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Schroder UK Alpha Income L

Bestinvest LogoTargets both growth and income from large and mid-cap UK equities.

PRICE (INC)

50.36p

PRICE (ACC)

74.5p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.68%

ONGOING CHARGE

0.84%

YIELD

4.3%

1 YEAR
8.59%

Prices as at 01 Jul 2022.

We don’t currently provide commentary on this fund.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to provide both capital growth and income by investing mainly in large and mid-cap UK equities. Manager Matt Hudson follows a “business cycle” approach, developed at former employer Cazenove. This involves him judging the state of the economy and then focusing on the types of companies he believes will benefit from it. For instance, he is likely to invest in more defensive companies during recessions but favour more cyclical stocks when the economy is booming.

Fund summary

SectorUK Equity Income
StructureOEIC
LaunchedOctober 2013
Size£91m
Yield4.3%
Charging BasisCapital
Dividends paid28 Feb, 31 Aug

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.68%
Ongoing Charges Figure0.84%

Investment Process

The fund’s investment universe is primarily FTSE 100 and FTSE 250 stocks, though some smaller companies will also be included. Matt Hudson follows a top-down approach known as business cycle investing. He believes economies and markets follow a cycle and aims to judge where we are in that cycle, then tilt the portfolio towards stocks and sectors he believe will benefit from the anticipated conditions. He classifies stocks into seven types: Commodity Cyclicals, Consumer Cyclicals, Industrial Cyclicals, Financials/Interest Rate Sensitives, Growth Defensives and Value Defensives. Stocks are also broken down into three different income buckets: Premium Real Yield - which drives the core of yield in the portfolio, Capital Return - which tends to be more cyclical companies, and Dividend Growth - which tend to be companies matching the market dividend with superior growth prospects. The weights to the different stock types and income buckets will vary according to the business cycle. The process also includes bottom-up stock selection, with the importance to bottom-up and top-down varying over time. Turning points in the cycle are a catalyst for change.

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