fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

BlackRock UK Income D

  • 450.40p
    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.

  • 1879.00p
    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?

  • 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!

  • 0.75%
    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).

  • 0.88%
    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.

  • 3.10%
    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 22 October 2021, fund data last updated 27 May 2014

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

Sector UK Equity Income
Structure UNIT TRUST
Launched
Size £393m
Yield 3.10%
Charging basis 33% Income 67% Capital
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.88%

Allocation

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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 fund has a strong process and is managed by an experienced team that has produced attractive returns, including an above market yield, since Goldman came on board in 2017. Avigdori was already in place, having worked on the fund from 2009. The focus on companies able or with the potential to pay a growing dividend leading to capital growth is attractive compared with simply investing in mature businesses paying a high but stagnant yield. The managers are also nimble, being able to move the portfolio around depending on the market environment and valuations. Turnover has been very high over the pandemic as the managers reacted to a Covid hit economy and then the first signs of a recovery. The fund may lag slightly in strong market conditions but has often held up better than the market on the downside.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

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

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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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Sector breakdown

Industrials 22.00%
Financials 19.00%
Consumer Staples 15.00%
Consumer Discretionary 14.00%
Health Care 12.00%
Basic Materials 7.00%
Energy 6.00%
Money Market 3.00%
Technology 2.00%
Utilities 1.00%

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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