Investment Companies Daily DGI9 Arqiva, NCYF appointment of co-PM, SOI dividend smoothing, EDIN final results

Research evidence excerpt

Investment Companies Daily DGI9 Arqiva, NCYF appointment of co-PM, SOI dividend smoothing, EDIN final results

tional Grid (5.0%). The largest overweight positions

vs the index are Haleon, NatWest, Rentokil, Anglo American and Dunelm. The largest

underweights are AstraZeneca, British American Tobacco, BP, Rolls-Royce and HSBC.

There are 40 holdings and the portfolio has an active share of 67% vs the index. The

largest sector exposures are Pharmaceuticals (15%), Software and Computer Services

(12%) and Banks (12%). The portfolio is underweight FTSE 100 names vs the index and

overweight FTSE 250 and has a small allocation (2%) in non UK listed names. In the year

to 31/3/26, notable purchases included what the manager considers de-rated data and

analytics companies that the manager thinks will turn out to be winners from the AI

evolution, including adding to positions in London Stock Exchange Group and RELX

and initiating new positions in Softcat and Sage. The managers added to positions in

Renishaw and Oxford Instruments. Marshalls and Ibstock were also added to the

portfolio. Disposals included Thermo Fisher Scientific, BAE Systems and a position in

Whitbread was reduced. The managers say that in the past year the tilt towards value has

increased but the portfolio retains a quality growth bias overall. The managers still aim

to find opportunities across the style spectrum.

• Dividends: The revenue return for the year to 31/3/26 was 26.60pps, up 6.3% year on year

and represents 0.83x cover of total dividends of 32.00pps, up 11.1% year on year. The

board says it is satisfied that a modest draw on capital is sustainable. The board points out

that many other companies return capital to shareholders through distributions including