ASI UK Income Unconstrained Equity I

Investment Process

The manager sits in Standard Life’s UK equity team and almost all his stocks are buy-rated by the team’s analysts, with their best ideas “Winners List” a particular focus. However, Moore is his own analyst on financials and small cap ideas. The team follows Standard Life’s “Focus on Change” investment philosophy, looking to identify changes in companies and industries ahead of the market and hence that haven’t been priced in. This should enable portfolio companies to grow their earnings and also benefit from positive sentiment, growing their earnings multiples. On this mandate the manager also has a focus on dividend growth. He believes the largest dividend paying stocks in the UK often have poor earnings and dividend growth prospects and are therefore unattractive investments. He focuses his research further down the market cap scale, particularly in the FTSE 250, to find stocks that have an attractive yield but where there is scope for earnings and dividend growth. This open-ended fund is run almost identically to the Standard Life Equity Income Investment Trust.