Fund of the week: conservatism will pay off

We take a closer look at Standard Life's Equity Income Trust, managed by Karen Robertson (left) whose conservative strategy should pay off as market conditions turn. Which reliable large caps does Robertson favour now?

One equity income fund that looks good value is Standard Life's Equity Income Trust, which was taken over in November 2005 by Karen Robertson, an economics graduate from Strathclyde University. Robertson is A-rated by Citywire, having beaten the average fund manager's performance by nearly 9% over the past three years.

She also runs the investment trust's sister fund, Standard Life UK Equity High Income, which has returned around 70% in the past three years, against the 58% sector average. The advantage of buying into the trust instead of the fund is that you get broadly the same performance ("around 90% of their holdings are the same", says Money Observer), but for half the management fee. The fund holds in the region of 70 FTSE 350 stocks with a large chunk in oil majors, such as BP and Royal Dutch Shell, and miners like Anglo American.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.