Imran Sattar will discuss his strategy for beating the FTSE All-Share while generating a stronger income than the UK market.

Edinburgh Investment Trust manager Imran Sattar is coming into the Citywire studios to discuss the ‘total return’ approach that has made his UK equity income strategy a top performer in recent years. 

In a virtual programme titled ‘A total return investing approach across market cycles’, presented by Citywire in association with Liontrust, Sattar will explore how his team combines bottom-up stockpicking with an eye on economic and thematic diversification. The aim is to create an enduring portfolio of high-quality and growing businesses. 

Alongside providing a growing income, the 3.6%-yielding trust is explicitly targeting strong levels of growth in the value of its holdings without relying on a particular investment style being in favour. 

That goal has been achieved over the five years that Sattar has worked on the trust, with shareholders enjoying a 115% total return versus 71% for the FTSE All-Share. Those gains also place Edinburgh near the top of its sector over that time, with the average UK equity income trust returning 77%, including dividends reinvested, according to the Association of Investment Companies. 

In addition to Sattar’s presentation, the event will feature a Citywire interview plus an audience Q&A. 

Shooting for the top of the table

The team behind Edinburgh took over the investment trust from Invesco in 2020, before Sattar and his former Majedie colleagues joined Liontrust. Sattar became lead manager in February 2024 and now runs the portfolio alongside deputy Emily Barnard. 

While the portfolio will always target a yield above the wider UK market, the manager is explicit that they are looking to top the table for total return across different market conditions, rather than targeting an unsustainably high yield.

Thematically, Sattar breaks down the portfolio into areas such as market champions and ‘self-help’ stories, as well as considering the mix of cyclical and defensive business models. 

Data and analytics has been a key theme for a decade, including holdings such as London Stock Exchange Group, Rightmove and Relx . But importantly, Sattar considers these themes so that he can strike a good balance of ideas and avoiding overly concentrated bets.

The fund manager summarises the approach as targeting ‘brilliant businesses at very attractive valuations’. While he is nervous about risks in the broader market, he contrasts this with real confidence in current holdings and the opportunity set in the UK.