BlackRock UK Income A

A focused barbell approach to UK equity income investing, with an emphasis on large and mid cap companies.

  • 366.40p
    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.

  • 1493.00p
    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?

  • 5.00% 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).

  • 1.67%
    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.

  • 4.90%
    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 July 2020, fund data last updated 27 May 2014

The fund's objective is to produce an above average and growing income and long term capital growth, through investment in a fairly focused portfolio of large and mid cap UK equities. Managers Mark Wharrier and Adam Avigdori build the portfolio around a core of companies offering both yield and free cashflow growth. These are supplemented with selected growth companies and turnaround situations. The fund is more focused than peer group alternatives - this may lead to periods of above average volatility.

Fund summary

Sector UK Equity Income
Structure UNIT TRUST
Launched March, 1984
Size £319m
Yield 4.90%
Charging basis 33% Income 67% Capital
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.49%
Annual management charge 1.50%
Ongoing charges figure 1.67%

Allocation

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Investment process

The portfolio is selected almost entirely from the FTSE 350 index. 70% of the portfolio will be focused on free cash flow and yield growth companies, 20% will be invested in growth companies for capital appreciation and the remaining 10% in “turnarounds” – equities that have fallen out of favour but have a strong case to restore value.

In April 2013 day to day responsibility for the fund was passed to Adam Avidgori, the number two manager on the fund since 2008. Later that year he was joined by co-manager Mark Wharrier.

Manager research

Average monthly relative returns

  • 15/16 0.38%
  • 16/17 -0.33%
  • 17/18 -0.34%
  • 18/19 0.08%
  • 19/20 0.43%

Bestinvest MRI

  • 3 years 0.06%
  • 5 years 0.05%
  • Career 0.15%
  • 3 years 78.50%
  • 5 years 75.80%
  • Career 94.30%

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

Adam Avigdori / Mark Wharrier

Avigdori is a member of BlackRock's UK Equity team in the Fundamental Equity division of BlackRock's Alpha Strategies Group. His service with the firm dates back to 2001, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. Avigdori earned a BSc (Hons) in Management Sciences from UMIST in 2001.

Track record

Adam Avigdori / Mark Wharrier has 6.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.15%. During the worst period of relative performance (from November 2015 - February 2018) there was a decline of 10% relative to the index. The worst absolute loss has been 22%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 94%.

Periods of worst performance

Absolute -22.00% (December 2019 - March 2020)
Relative -10.00% (November 2015 - February 2018)

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.

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Top 10 holdings

Data accurate as at 31 January 2020

5.2655% British American Tobacco
5.1293% Relx Plc
4.8137% Astrazeneca Plc
4.744% Glaxosmithkline
4.6396% National Grid
3.9329% Bp
3.6631% Royal Dutch Shell
3.6091% Tesco
3.4257% Associated British Foods Plc
3.3466% Unilever
Source: Trustnet

Sector breakdown

Financials 24.00%
Consumer Goods 18.00%
Consumer Services 16.00%
Health Care 12.00%
Utilities 8.00%
Oil & Gas 8.00%
Industrials 6.00%
Basic Materials 3.00%
Telecommunications 3.00%
Money Market 2.00%

Portfolio

35-45 stocks. The Fund may invest up to 20% in non-UK equities.

Key Investor Information - Income

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Key Investor Information - Accumulation

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