ASI UK Equity High Income R

A diversified portfolio of large and mid-cap UK equities targeting income and capital growth.

  • 62.97p
    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.

  • 210.80p
    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!

  • 1.50%
    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).

  • 1.59%
    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.

  • 5.00%
    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 02 December 2020, fund data last updated 06 January 2016

The fund targets income (10% above the FTSE All-Share Index) and moderate long term capital growth by investing in a concentrated selection of large and medium sized UK equities. Some bonds may also be held to supplement the yield. The fund's manager, Karen Robertson, follows a house process that aims to identify change ahead of the market. She is a pragmatic investor and will tilt the fund style to suit prevailing market conditions.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched May, 1986
Size £302m
Yield 5.00%
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 1.50%
Ongoing charges figure 1.59%

Allocation

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Investment process

The objective of this fund is to provide above average level of income with some capital appreciation. The income requirement is at least 110% of the FTSE All-Share. To achieve these targets the fund invests predominantly high yielding equities although yield is observed at fund level rather than stock level. The key to the investment process is the 'Focus on Change' approach to identify earnings and dividend upgrades ahead of the market and valuation anomalies. A proprietary stock ranking tool, the UK Matrix, which utilises 12 factors, is initially used to identify potential investments. Prospective investments are then considered on fundamental grounds with the manager favouring companies which are cash generative, trading ahead of expectations and have solid management. Robertson does not have a particular style tilt and therefore seeks outperformance throughout the cycle.

Robertson has been running the fund since 1995 and draws on the experience of a well-resourced UK Equity team as well as Standard Life's proprietary quantitative model. She has added value over her career but we have higher conviction in other options in the sector.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 -0.57%
  • 19/20 -0.78%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.64%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.70%

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

Iain Pyle

Iain Pyle joined Standard Life Investmentsin January 2015 from Sanford C Bernstein in London, where he was a vice president within a team covering the European oil and gas sector.

Track record

Iain Pyle has 2.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.64%. During the worst period of relative performance (from April 2018 - October 2020) there was a decline of 18% relative to the index. The worst absolute loss has been 34%.

Periods of worst performance

Absolute -34.00% (May 2018 - March 2020)
Relative -18.00% (April 2018 - October 2020)

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

6.5% Astrazeneca Plc
5.9% British American Tobacco
5% Bp
4.6% Glaxosmithkline
4% National Grid
3.6% Prudential Plc
3.6% Rio Tinto
3.2% Bhp Billiton Plc
3.2% Royal Dutch Shell Plc
3% Gvc Hldgs Plc
Source: Trustnet

Sector breakdown

Financials 23.00%
Health Care 16.00%
Consumer Goods 14.00%
Oil & Gas 14.00%
Basic Materials 10.00%
Consumer Services 6.00%
Industrials 6.00%
Utilities 6.00%
Telecommunications 2.00%
Money Market 2.00%

Portfolio

The fund will typically hold 50-70 holdings and a minimum of 40 stocks at any given time.

Constraints

Up to 10% of the Fund may be held in non-eligible securities. Max 7.5% in any single issuer. Sector constraints are flexible and can be as high as +/- 15% relative to the fund's benchmark. The tracking error range is 4-8%. Cash will not exceed 5% by market value.

Key Investor Information - Income

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Key Investor Information - Accumulation

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