Hargreaves Lansdown (HL) has added Jupiter UK Income to its Wealth Shortlist, bringing a value-focused UK equity income strategy onto the platform's list of recommended funds.
The £1.6bn fund, which scored a maximum FE fundinfo Crown Rating of five, is co-managed by Adrian Gosden and Chris Morrison, who took charge in April 2024. The pair had previously run the GAM UK Equity Income fund together from October 2017 to July 2024, a track record HL analyst Aidan Moyle cited as part of the case for adding the fund. Gosden worked for 13-years at Artemis before he and Morrison began working together at GAM in 2017.
Performance of fund against index and sector under managers’ tenure
Source: FE Analytics
Moyle described the managers' process as “straightforward”: identifying companies they believe are undervalued but able to generate the cashflow needed to pay dividends, reinvest in the business and fund future growth.
“We like the simplicity of the process,” he said. “They’re not trying to do anything overly complicated but instead focus on whether a company can generate sustainable cashflows and return some of that cash to shareholders over time.”
The fund has a value bias, with financials (21.5%), consumer staples (18.3%) and health care (14.6%) the sectors it invests most in. Its top three holdings were Glaxosmithkline (6%), Standard Life (5.9%) and British American Tobacco (5.2%), as of the end of July.
Unlike other UK income funds that can be overly concentrated in the largest dividend payers, Gosden and Morrison can also invest in medium-sized and smaller companies; the fund is split roughly 70% in the FTSE 100 and 30% in FTSE-250 companies and smaller.
Moyle said this flexibility was one of the fund's strengths as this “can give investors a broader range of income opportunities than funds focused mainly on the largest dividend-paying companies”, although he highlighted that investing in smaller companies also “adds risk”.
The fund's current yield is at 4.56%, against 3% for the FTSE All-Share, according to HL. The managers have also historically generated a higher yield than the FTSE All-Share while increasing income payments over time.
Moyle said the addition gives Wealth Shortlist investors a different route into UK income alongside its existing picks (Artemis Income and Janus Henderson UK Responsible Income), on account of the fund's value tilt and smaller company exposure.
“Overall, we’re impressed by Gosden and Morrison’s experience, track record, straightforward investment process and disciplined approach to income investing,” he said.
“We believe the fund offers a differentiated, value-oriented approach that has the potential to deliver attractive returns for patient investors over the long term.”
This year, Jupiter UK Income has featured on Trustnet as one of the ultimate UK equity income funds, the best-performing UK funds under Starmer and the most consistent UK funds over the past decade.