Allianz UK Equity Income A

Fund writes covered call options to boost income yield.

  • 240.59p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.25%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.38%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 5.10%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 01 July 2020, fund data last updated 14 April 2004

Fund summary

Sector UK Equity Income
Structure OEIC
Launched June, 2002
Size £55m
Yield 5.10%
Charging basis Capital
Dividends paid 30 Apr, 31 Oct

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.38%

Allocation

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Investment process

The Fund aims to generate income and capital growth by investing in well-established UK companies and internationally, and in all economic sectors. In June 2007 the fund began writing covered call options with the aim of boosting yield by 0.5% to 1% a year.

The open-ended Allianz UK Equity Income fund is similar to the London-listed closed-ended Merchants Trust (LSE:MRCH) run by the same manager.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.15%
  • 18/19 0.05%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.07%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 34.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Simon Gergel

Gergel joined RCM in April 2006 from HSBC Halbis Partners where he managed over £900m in high income funds as well as core institutional and life UK equity portfolios. Prior to joining HSBC in 2001, he worked for 14 years at Phillips & Drew Fund Management / UBS Asset Management where he was involved in all aspects of UK equity fund management, including research, portfolio management and account director roles. Gergel graduated in 1987 from Cambridge University with an honours degree in mathematics and is an associate of the UK Society of Investment Professionals.

Track record

Simon Gergel has 3.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.07%. During the worst period of relative performance (from August 2002 - February 2003) there was a decline of 9% relative to the index. The worst absolute loss has been 12%.

Periods of worst performance

Absolute -12.00% (August 2002 - January 2003)
Relative -9.00% (August 2002 - February 2003)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 January 2020

4.6% Royal Dutch Shell
4.2% Glaxosmithkline
3.91% Imperial Brands Plc
3.65% Bae Systems
3.42% British American Tobacco
3.02% Barclays Plc
2.74% St James`S Place Plc
2.7% Land Securities Group Plc
2.64% Sse Plc
2.32% Standard Life Aberdeen Plc
Source: Trustnet

Sector breakdown

Financials 23.00%
Industrials 23.00%
Consumer Goods 15.00%
Consumer Services 12.00%
Utilities 8.00%
Oil & Gas 7.00%
Health Care 5.00%
Basic Materials 4.00%
Others 3.00%

Key Investor Information

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