Rathbone Income R

A value-orientated fund invested in UK equities.

  • 710.43p
    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.

  • 1319.91p
    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?

  • 2.50% 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).

  • 1.55%
    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%

    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 10 July 2020, fund data last updated 23 April 2009

This fund targets a sustainable, above average income, by investing in UK equities. The portfolio is based around themes identified from economic research - stocks are selected that will benefit from these. The fund invests across the market cap spectrum without regard to the benchmark, and has historically had a bias to small cap stocks.

Fund summary

Sector UK Equity Income
Structure UNIT TRUST
Launched February, 1971
Size £837m
Yield 5.40%
Charging basis Capital
Dividends paid 15 Jun, 15 Dec


Standard initial charge 2.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.55%


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Investment process

The fund's objective is to achieve above average and maintainable income, without neglecting capital security and growth, predominantly through investing in UK equities. The process starts with macroeconomic research to identify themes likely to influence the market going forward. The team then look at industries to see which will benefit or be harmed by these themes, before undertaking stock specific research. The manager typically targets companies with strong market positions and high barriers to entry, believing they will generate high and sustainable returns on capital. He also likes experienced, conservative management teams, particularly those that invest in their companies. He prefers companies with well covered dividend yields, and those whose balance sheets do not rely on leverage.

We have higher conviction in other funds in the IA UK Equity Income sector.

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 -0.37%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 22.40%

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

Carl Stick

Stick graduated from the University of Southampton in 1991 with a BA Honours degree in English Literature. He is also IIMR qualified and a Fellow of the Securities Institute. After serving in several non-investment related jobs, he took up a position as an assistant private client manager with stockbroking firm Neilson Cobbold, Tunbridge Wells in 1996. He joined Rathbones in London in 1998 when they acquired Neilson Cobbold and became an assistant fund manager the same year. He took over the management of the Rathbone Income Fund in January 2000, and subsequently ran their Smaller Companies and Special Situations funds. In October 2001 he became a board director of Rathbone Unit Trust Management.

Track record

Carl Stick 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 -0.37%. During the worst period of relative performance (from February 2002 - July 2003) there was a decline of 16% relative to the index. The worst absolute loss has been 54%.

Periods of worst performance

Absolute -54.00% (November 2000 - March 2003)
Relative -16.00% (February 2002 - July 2003)

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

4.44% Glaxosmithkline
4.4% Reckitt Benckiser Group Plc
4.06% Legal & General Group
4.05% Bp
3.79% Royal Dutch Shell
3.78% National Grid
3.39% British American Tobacco
3.25% Sse Plc
3.11% Unilever
2.91% Carnival Plc
Source: Trustnet

Sector breakdown

Consumer Goods 22.00%
Financials 18.00%
Consumer Services 14.00%
Health Care 10.00%
Utilities 10.00%
Industrials 9.00%
Oil & Gas 8.00%
Cash & Cash Equivalents 6.00%
Basic Materials 2.00%
Technology 1.00%


The manager tends not to invest more than 5% in an individual stock. There are no formal benchmark constraints.

Key Investor Information - Income


Key Investor Information - Accumulation