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BlackRock UK Income D

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

PRICE (INC)

455.69p

PRICE (ACC)

1968.54p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.82%

YIELD

4.2%

1 YEAR
5.02%

Prices as at 10 Aug 2022.

Fund commentary last updated 29 Sep 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund seeks to deliver superior long-term total returns through a cycle including a premium & growing dividend – target yield is above that of the FTSE All-Share index. Managers Adam Avigdori and David Goldman look for companies with attractive, consistent cashflows through economic cycles which will lead to long-term dividend and capital growth. They are bottom-up stockpickers targeting primarily high-quality companies such as oil giant Royal Dutch Shell and Covid vaccine pharmaceuticals group AstraZeneca, which can be relied upon for consistent earnings and dividend growth. However, they also keep a keen eye out for companies with the potential to produce growing cashflows in the future.

Fund summary

SectorUK Equity Income
StructureUNIT TRUST
LaunchedJune 2011
Size£366m
Yield4.2%
Charging Basis33% Income 67% Capital
Dividends paid31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0.52%
Annual Management Charge0.75%
Ongoing Charges Figure0.82%

Investment Process

The fund’s investment universe is the FTSE All-Share and it holds a portfolio of 35 to 40 names. It mainly invests in UK-listed stocks but can and will own up to 20% non-UK listed stocks. The managers take a top-down economic view as well as using bottom-up stock selection, helped by BlackRock’s huge team of analysts including 14 covering UK listed stocks and 280 covering global stockmarkets. They invest in resilient companies with sustainable free cash flow, good management and strong balance sheets. The managers also place a big emphasis on the quality of a company’s management team and their ability to correctly allocate capital. Most of the fund is invested in high quality stocks growing their dividends year-on-year, with around 30% invested in those with the potential to produce attractive free cashflow and growing dividends in the future. This gives the managers flexibility to not just focus on traditional income names but invest in stocks where they can see a road map to strong cashflow performance.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning