Rathbone Unit Trust Management (RUTM) confirms that with effect from 1 March 2009, the Rathbone Income and Growth Fund was renamed the Rathbone Blue Chip Income and Growth Fund. In doing this, the fund will have a name which highlights where the fund is invested. Currently yielding 6.17% (net, 02.03.09), the fund usually invests not less than 75% in shares in the FTSE 100 index whilst leaving the manager scope to invest the balance of the portfolio to deliver additional performance from other areas of the UK stockmarket.
This fund will appeal to people seeking a UK equity income fund with higher investment in mainly larger companies.
No further changes to the fund will be made but we will take the opportunity to move the fund from the IMA UK All Companies sector to the newly created IMA UK Equity Income and Growth sector comprising of equity income funds with a yield requirement of between 90% to 110% of the FTSE All-Share index yield. In doing this, RUTM highlights the excellent and consistent track record of increased distributions (the fund has delivered an increased payout year-on-year in each of the last 18 years) at a time when income-seeking is a key concern. The end of March is the IMA’s proposed deadline for details of the new sector composition to be made public.
David Holloway, Head of Marketing, Rathbone Unit Trust Management Limited says:
“This is the right product at the right time – investors are searching hard for high-yielding products that deliver a steady and increasing income. Banks and building societies and other traditional income-providing areas are falling short so IFAs are beginning to turn back to the simplicity and transparency of UK equity income products. We have renamed and reclassified our fund but we have the same highly experienced manager at the helm, the same income track record and the same proven investment process.”