ASI Europe ex UK Income Equity I

Targets a high yield from large and mid cap European (ex UK) equities.

  • 101.20p
    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.

  • 161.20p
    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?

  • 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!

  • 0.75%
    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).

  • 0.85%
    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.

  • 3.30%
    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 22 January 2021, fund data last updated 16 August 2016

This fund targets income (target yield is 15% above that of the benchmark) and some capital growth through investment in large and mid-cap continental European equities. Manager Will James forms the core of the portfolio (around 50%) from High Dividend stocks with premium, sustainable yields. He supplements this with around 35% invested in Dividend Growth stocks, with lower yields but fast dividend and capital growth, and a further 15% in Dividend Upgrade stocks, where dividend capacity is significantly underappreciated by the market. The portfolio typically has a slight bias to growth and away from value.

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched April, 2009
Size £640m
Yield 3.30%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.85%

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Investment process

The fund is run using Standard Life’s "Focus on Change" investment philosophy and largely focuses on stockpicking rather than macro conditions. It feeds off Standard Life’s analysts, who reduce a universe of over 600 stocks to around 100 buy recommendations with the high conviction Winners List of 20 stocks a prominent source of ideas. However, James has a focus on yielding stocks and to this end may invest in some stocks that are not buy rated by the analysts. He splits the portfolio into three types of company: - High Dividend (around 50% of portfolio). Companies that have a good track record of paying a healthy and growing dividend to investors where James feels that this is going to continue. - Dividend Growth (around 35%). Companies delivering rapid dividend growth, where James believes this is sustainable. - Dividend Upgrade (around 15%). Stocks where James believes dividend-paying capacity is mispriced, either because they can surprise with a larger than expected dividend or can avoid an expected dividend cut. Understanding a company’s dividend policy is key, and the team spends a fair amount of its time researching and meeting companies to judge this.

Manager research

Average monthly relative returns

  • 16/17 -0.17%
  • 17/18 -0.21%
  • 18/19 -0.32%
  • 19/20 -0.09%
  • 20/21 -0.05%

Bestinvest MRI

  • 3 years -0.16%
  • 5 years -0.17%
  • Career 0.00%
  • 3 years 29.80%
  • 5 years 22.10%
  • Career 73.60%

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

Will James

James has been an Investment Director on Standard Life's European desk since 2007. He also covers the IT Hardware, Banks and General Retail sectors as an analyst. He began his investment career at Adam and Company in 2002, where he ran a global fund and attained a Citywire AA rating. Previously James was in the British Army, serving as an officer in the 1st Battalion The Argyll and Sutherland Highlanders. He graduated from Edinburgh University, he holds the IMC, Securities Institute Diploma and is a CFA charter holder.

Track record

Will James has 11.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -00%. During the worst period of relative performance (from May 2012 - June 2019) there was a decline of 13% relative to the index. The worst absolute loss has been 18%.

Periods of worst performance

Absolute -18.00% (April 2011 - September 2011)
Relative -13.00% (May 2012 - June 2019)

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 30 June 2020

5.1% Enel Spa
4.2% Rwe Ag(Neu)
4% Finecobank
3.6% Axa
3.6% Novo-Nordisk As
3.6% Roche Hldg Ag
3.4% Zurich Insurance Group Ltd
3.3% Nestle Sa
3.1% Partners Group Holding
3.1% Vonovia Se
Source: Trustnet

Sector breakdown

Financials 27.00%
Industrials 14.00%
Health Care 14.00%
Utilities 13.00%
Consumer Goods 8.00%
Telecommunications 7.00%
Oil & Gas 5.00%
Consumer Services 5.00%
Basic Materials 5.00%
Money Market 2.00%

Portfolio

40-70 stocks. The fund may also invest in convertibles.

Constraints

Stock weights must be within +/-5% of index, country weights +/-15% and sector weights +/-15%. Max 20% in convertibles, fixed interest and cash. VP 07.30.

Key Investor Information - Income

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Key Investor Information - Accumulation

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