Merian UK Equity Income A

Large and mid cap UK income fund with a pragmatic approach.

  • 791.90p Price (Inc)
  • 3220.00p Price (Acc)
  • 4.00% 0.00% Initial charge
  • 1.65% Annual management charge
  • 1.65% Ongoing charges
  • 5.00% Yield

Prices as at 06 December 2019, fund data last updated 24 September 2015

The fund aims to achieve an above average yield with growth in income and capital appreciation over the long term, by investing primarily in large and mid-cap UK equities.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched September, 1975
Size £63m
Yield 5.00%
Charging basis Capital
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.65%
Ongoing charges figure 1.65%

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Investment process

The manager invests almost entirely in stocks from the FTSE 100 and FTSE 250 indices. He describes his style as pragmatic and he invests in a combination of core income stocks (those with premium dividend yields and good prospects for dividend growth) and core growth stocks (those that can grow profits or are re-rating candidates – there is no yield requirement for these, though they should offer dividend growth). In sourcing stocks Message looks for: - Internal change. This can include new management teams, extensive restructuring or the first positive earnings surprise for some time. Message believes the market is often slow to react to a turnaround in a company that has disappointed for some time. - External change. Companies benefiting from changes that affect an entire industry or the overall economy. - Undervalued quality. Durable businesses where the valuation does not reflect the sustainability of returns. Message periodically checks his portfolio against average peer group exposure - this is to ensure he is differentiated enough to outperform.

In a sector where many of the popular options have grown quite large, this fund benefits from a small size and with the FTSE 350 focus is highly scalable. Performance has been strong, and the fund doesn’t have the small and mid-cap bias of many of the other top performers in the sector, making it more suitable as a core holding.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 -0.28%
  • 18/19 -0.34%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.28%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 10.20%

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

Ed Meier

Meier graduated from Oxford University with a BA Classics and joined Fletcher Advisory in 2000 as a Technology/Strategic consultant. In 2002, he left for BAE Systems to manager their pension fund. He started working at Schroders in January 2006, he joined the Research team as a Pan European analyst covering the European Technology sector. Meier is a CFA charterholder.

Track record

Ed Meier has 2.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.28%. During the worst period of relative performance (from December 2016 - August 2019) there was a decline of 11% relative to the index. The worst absolute loss has been 15%.

Periods of worst performance

Absolute -15.00% (July 2018 - December 2018)
Relative -11.00% (December 2016 - August 2019)

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 August 2019

5.2% Glaxosmithkline
4.5% Gvc Hldgs Plc
4.3% Royal Dutch Shell
3.9% Bp
3.6% Imperial Brands Plc
3.4% Vodafone Group
3.3% British American Tobacco
3.1% Diversified Gas & Oil Plc
3.1% Smith(Ds) Plc
3.1% Glencore Plc
Source: Trustnet

Sector breakdown

Financials 25.00%
Consumer Services 18.00%
Oil & Gas 12.00%
Consumer Goods 10.00%
Industrials 10.00%
Health Care 9.00%
Basic Materials 5.00%
Utilities 4.00%
Technology 4.00%
Telecommunications 3.00%

Portfolio

40-60 stocks.

Key Investor Information - Income

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Key Investor Information - Accumulation

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