ASI UK Equity Income A

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.

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.