The most popular UK income fund with the professionals – and it’s still not Woodford

Threadneedle

Richard Colwell’s £3.2bn Threadneedle UK Equity Income fund is the most popular UK equity income fund with multi-asset managers in the Investment Association universe, according to the latest FE Trustnet study, overtaking Artemis Income which sat at the top of the list last year. According to FE data, the Columbia Threadneedle fund sits at the top of the popularity tables with funds of funds managers as some 29 multi-asset portfolios count the three crown-rated vehicle as a top 10 holding – three more than Majedie UK Income, which sits in second place.

The soaring arm has got increasing number of followers

Despite a soaring AUM and an increasing number of followers, the now £8.3bn CF Woodford Equity Income fund is still only in third place as it features in 23 top 10s. However, that is an increase from last year when 18 funds held it in their list of biggest holdings.The last two years’ favourite, Artemis Income, has fallen to fourth spot as while 57 and 36 funds held it their top 10 in 2014 and 2015, respectively, that figure has fallen to just 22 this time around.

What is also noticeable is the absence of FE Alpha Manager Mark Barnett’s three UK equity income funds. In fact, just eight multi-asset funds hold Invesco Perpetual Income in their top 10, only five have Invesco Perpetual UK Strategic Income and Ingenious Global Growth is the only portfolio to have Invesco Perpetual High Income as a top 10 position, despite its £12.6bn size.Turning back to the top of the list, though, and Colwell (pictured) – who assumed sole responsibility of the portfolio from Leigh Harrison in October last year – has some notable backers.

Columbia ThreadNeedle manages the top 10 of 29 funds

Though six of those 29 funds that hold it in their top 10 are managed by Columbia Threadneedle, the likes of Bambos Hambi have sizable stakes in Threadneedle UK Equity Income within his Standard Life Investments MyFolio range and Tilney Bestinvest uses the fund in six of its OEICs.Interestingly, however, 33 funds held Threadneedle UK Equity Income in their top 10 this time last year.The Threadneedle fund has one of the best long-term track records in the IA UK Equity Income sector and since Colwell was named a manager on the portfolio in September 2010, it sits comfortably in the top quartile with gains of 77.73 per cent.

The fund has also made money and beaten the index in every year under Colwell’s stewardship. The fund is biased towards the larger end of the UK market, but Colwell aims to run a more contrarian portfolio than many of his peers in order to deliver an attractive starting yield.  For example, he holds the likes of GlaxoSmithKline, Marks & Spencer Group, Morrisons and Centrica in his top 10 and, as a result, Threadneedle UK Equity Income yields more than 4 per cent. To know more news on finance and trade, you can follow us at https://twitter.com/financetradingn

Categories of Decision Making Algorithms in Trading

Decision Making Algorithms in Trading

Everyone knows that algorithmic trading is a giant now in the world market. But these algorithms will go various modulations in accordance with the market space and the trader requirements. But under a broader classification the algorithms can be classified into three as decision making algorithm, execution algorithm and the execution plus algorithm. Each will do there respective jobs as its names define. This article will be explaining the various categories that are found in the decision making algorithm. This will help the traders to better understand what algorithm to be selected for their trading requirements.

Types of Decision Making Algorithms

  1. Market making – this is nothing but selling and buying of the models at a very appropriate bid/offer spread. The trader will make money by constantly selling the models at the pre determined bid/offer spread and he will be creating the market.
  2. Index arbitrage – in this the traders will often get their profit from the discrepancies between the price of the constituent underlying and the index price.
  3. Pair trading – in this the model or the stock will usually get its price linked with the external sources usually. When there is a change in the price of the external factor, then the price of the stock will also get altered. It may sometimes end up in profit and sometimes in loss.
  4. Statistical arbitrage – in this case, the strategies will be little complex or even more complex sometimes according to the need of the trader. Again, just as the pair trading, there is a correlation required in this category also. But not just between two. The correlation will be between hundreds of models and the profit will be made based on the discrepancies between the stocks. But these discrepancies must be usually for a short span of time.
  5. Technical analysis – this is nothing but another form of statistical trading. This is more applied to the volume charts and the time series prices. The Bollinger bands and the moving averages are the typical tools that will be used to identify the trends and the patterns.
  6. Automated gaming – this is a strategy that will be looking at the market participants of other marketers and will observe their activities and then will try to anticipate their future activities. By this way the marketer who makes use of this will play games at the trade of other marketers and will earn good profit out of it.

High frequency trading – in this the orders will be checked at a really faster speed than any other strategies. Though the other categories can make use of HFTs, there are more specific HFTs available in the market for meeting the trader requirements. If you are planning to have your future in the trading platform, then it is better to go for a certification course in algorithmic trading, which will give you a great exposure towards the world trade and also an assured trading job in the future.