Majedie's Reid: UK Income recovering after 'missed opportunities' ahead of Brexit vote

Fund's passes five-year mark

Chris Reid, lead manager on the £893m Majedie UK Income fund, has attributed his portfolio's "difficult" performance in 2016 to a misjudged focus on preserving capital in the run-up to last June's EU referendum and a tougher environment for income managers following the vote.

Despite performance picking up in the fourth quarter, Reid's fund broke a four-year run of outperformance last year, returning 7.3% against the FTSE All-Share index return of 16.8%, and the IA UK Equity Income sector average of 8.4%, as well as seeing outflows of more than £200m over the period, according to FE.  The manager (pictured) said the fund's underperformance can partially be attributed to his attempts to preserve capital in H1 2016, by focusing on companies likely to survive a potential Brexit vote. These included stocks such as Legal & General, which was the portfolio's second...