237. Hunting for profits in UK Equity Income

<p>Sid Chand Lall, manager of the IFSL Marlborough Multi Cap Income fund, talks to us about finding income opportunities in the UK&apos;s smaller – but growing – companies. He describes how he finds profitable companies and explains how dividends can help offset the erosion caused by inflation. Sid also highlights one smaller company and two medium-sized ones in the portfolio: Ricardo Plc, Paragon Banking Group and Drax Group.<br/><br/><b>What’s covered in this episode: </b></p><ul><li>Understanding the Investment Association’s “yield test”</li><li>How the manager finds profitable companies for the portfolio</li><li>How dividends can help offset the impact of inflation</li><li>Why investors should consider UK equity income over UK gilts </li><li>Why the fund tends to be overweight small and medium companies</li><li>Why UK mid-caps outperform when the dollar weakens</li><li>Sid highlights one smaller company holding…<ul><li>Ricardo a global engineering, environmental and strategic consultancy, based in West Sussex</li></ul></li><li>And two mid-cap holdings: <ul><li>Paragon Banking Group, a financier of buy-to-let mortgages and</li><li>Drax Group, the UK’s biggest biomass generator.  </li></ul></li></ul><p><br/><b>More about this fund:</b><br/>The team behind IFSL Marlborough Multi Cap Income fund are specialists in UK smaller companies investing, so this multi-cap fund offers something radically different to the majority of large-cap, FTSE 100-focused, UK equity income funds. It aims to combine fast and sustainable dividend growth with capital appreciation. The fund uses a blend of ‘value’ and ‘growth’ holdings to meet its yield objective.<br/><br/>Learn more on <a href='https://www.fundcalibre.com/'>fundcalibre.com</a><br/><br/><em>Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are t