ASI UK Equity Income A

Targets both capital growth and income from primarily large and mid-cap UK equities.

  • 341.72p
    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.

  • 1207.53p
    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!

  • 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).

  • 1.61%
    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.

  • 4.20%
    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 20 October 2020, fund data last updated 12 February 2015

This fund targets an attractive income along with capital growth from predominantly large and medium size UK equities. A small number of European companies may also feature in the portfolio. Aberdeen's Pan European team takes a predominantly bottom-up approach, looking for quality companies whilst applying a conservative approach to valuing them. Once bought, stocks are generally held for the medium to long term.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched April, 2006
Size £155m
Yield 4.20%
Charging basis Capital
Dividends paid 30 Apr, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.61%

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Investment process

Stock research is almost entirely in-house, with team members combining the roles of fund manager and analyst. A theoretical universe covering all UK equities is narrowed to an Aberdeen universe of around 200 using a quality filter, which attempts to identify companies with good prospects for recurring growth, the balance sheet to support expansion and which are run in the interests of shareholders. A secondary filter is then used to assess companies' valuations relative to market price and to the value of their peers. A key discipline in this stage of the process is to avoid overpaying. Companies that pass the second stage are placed on a watch list and the managements of these companies are visited at least once a year whilst companies in which Aberdeen invests are visited at least twice annually. Stocks are sold following a change of personnel, a loss of business direction, or when Aberdeen feels valuations have become stretched. Portfolio turnover is typically low.

This fund takes Aberdeen’s standard process, developed in Asia by head of Equities Hugh Young, and applies it to the UK equity market. The process is fairly conservative, typically providing the fund with a degree of protection in falling markets but causing it to lag strongly rising markets. However, it has been less successful in the UK than on other Aberdeen funds, so we have higher conviction in other UK equity income funds.

Manager research

Average monthly relative returns

  • 15/16 0.14%
  • 16/17 0.32%
  • 17/18 0.34%
  • 18/19 0.04%
  • 19/20 -0.12%

Bestinvest MRI

  • 3 years 0.09%
  • 5 years 0.14%
  • Career 0.00%
  • 3 years 50.00%
  • 5 years 50.00%
  • Career 65.20%

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

Charlie Luke

Luke is a graduate of Leeds University where he read an Undergraduate Degree in Economics and Japanese Studies before obtaining a Masters Degree in Business and Economic History from the London School of Economics. He began his career at Framlington where he covered a broad range of Small Cap, Income and Internet companies, culminating in the day to day management of two of the company’s Income Investment Trusts. Following a two year period at Framlington he joined Aberdeen in May 2000 to work on the UK Desk.

Track record

Charlie Luke has 8.5 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 January 2007 - May 2009) there was a decline of 14% relative to the index. The worst absolute loss has been 46%.

Periods of worst performance

Absolute -46.00% (May 2007 - February 2009)
Relative -14.00% (January 2007 - May 2009)

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 July 2020

4.4% Astrazeneca Plc
3.9% Unilever
3.7% Glaxosmithkline
3.6% Diageo
3.5% Bhp Group Plc
3.3% Rio Tinto
3.1% Relx Plc
3% National Grid
2.9% British American Tobacco
2.8% Assura Plc
Source: Trustnet

Sector breakdown

Consumer Staples 15.00%
Health Care 15.00%
Industrials 14.00%
Financials 12.00%
Materials 11.00%
Real Estate 7.00%
Utilities 7.00%
Others 6.00%
Consumer Discretionary 4.00%
Energy 3.00%

Portfolio

Between 35-75 stocks. Call and put options may also be held.

Key Investor Information - Income

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Key Investor Information - Accumulation

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