A contrarian approach to UK Equity Income

Most UK equity income funds chase the same high-yielding names. Jeremy Smith, Portfolio Manager, CT UK Equity Income Fund, Columbia Threadneedle Investments, explains how his £5bn strategy targets undervalued UK companies going through transformational change. Smith targets companies that have significantly underperformed over three years and show dislocations from long-term valuations. "We're trying to find good businesses that no one else is interested in," Smith says. "If these businesses transform from a caterpillar into a butterfly, we hold on to them for their compounding benefits."...