Santander MMs turn to income for UK equity exposure

Santander multi-managers Tom Caddick (pictured) and Toby Vaughan have invested in a UK equity income fund using their UK equity weighting for the first time.

They added a position in Leigh Harrison and Richard Colwell’s £1.5bn Threadneedle UK Equity Income fund last month. Though the pair have separate income allocations within their multi-manager portfolios, the purchase represents the first time they have sought income exposure via their UK equity holdings. “The purchase is a reflection of the fact we see a high proportion of returns being driven by income in the future. From a total return perspective, income still offers slightly more attractive risk-adjusted returns,” said Vaughan. “It is a core income fund but they are relatively ...