Invesco Income (UK)

  • 1002.72p
    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.

  • 2155.16p
    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!

  • 1.66%
    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).

  • 1.66%
    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.

  • 5.40%
    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 28 October 2020, fund data last updated 14 August 2015

The fund targets a reasonable level of income together with capital growth from investment primarily in UK equities. The bulk of the portfolio consists of large cap stocks with some mid-cap exposure - manager Mark Barnett also takes advantage of the ability to invest up to 20% overseas. Barnett replaced the fund’s longstanding manager Neil Woodford in 2014 but adopts a similar quality-focused, unconstrained investment approach – historically this has led to the portfolio having significant skews to certain industries.

Fund summary

Sector UK All Companies
Structure OEIC
Launched
Size £1,468m
Yield 5.40%
Charging basis Capital
Dividends paid 31 May, 30 Nov

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.66%
Ongoing charges figure 1.66%

Allocation

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Investment process

The fund invests in companies of all sizes, but the bulk of the portfolio will consist of FTSE 100 and FTSE 250 stocks. Barnett also takes advantage of the IA rules that allow him to invest up to 20% of the fund overseas. He initially shapes his portfolio through a top down view which is combined with fundamental analysis at the stock level focusing on balance sheets and cash flows. There are no rigid yield criteria, though Barnett prefers companies on reasonable yields offering dividend growth. He also favours companies with visibility of earnings, often backed by barriers to entry, so the fund often has significant weights, relative to its peers, in more defensive sectors such as healthcare, tobacco and utilities. The portfolio includes around 5% in unquoted shares - these are generally sourced via technology transfer companies, which commercialise universities' intellectual property.

Neil Woodford is a hard act to follow, but Mark Barnett worked closely with him and has a very strong track record in his own right. Barnett's portfolios are less focused by stock and sector than Woodford's and have more mid-cap exposure, but the two have similarly defensive investment styles. Consequently we expect the performance credentials of the fund will remain intact. Typically the style has led to the fund proving resilient in falling markets, though it can lag in strongly rising markets. The total return philosophy means the fund no longer qualifies for the IA Equity Income sector, but it still pays a reasonable yield.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 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

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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

Financials 21.00%
Consumer Services 19.00%
Industrials 13.00%
Health Care 12.00%
Consumer Goods 9.00%
Utilities 8.00%
Oil & Gas 7.00%
Basic Materials 6.00%
Telecommunications 2.00%
Unit Trusts 1.00%

Portfolio

Over 100 stocks, including up to 20% in overseas companies and around 5% in unquoteds. Note the portfolio is a near mirror of the manager's High Income fund.

Key Investor Information - Income

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Key Investor Information - Accumulation

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