UK equity fund aiming for long-term total returns, with an emphasis on income.
Prices as at 11 Aug 2022.
Fund commentary last updated 15 Oct 2021.
Past performance is not an indication of future performance.
Capital at risk.
|Sector||UK All Companies|
|Dividends paid||31 Jan, 30 Apr, 31 Jul, 30 Oct|
|Standard Initial Charge||5%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.77%|
|Ongoing Charges Figure||0.77%|
The fund can invest in UK companies of all sizes plus US and European large caps. These are screened on: Quantitative factors. Most import of these is high and consistent profitability – this is seen as an indicator of sustainable competitive advantage. The manager also looks for asset-light companies with low capital expenditure, as these can fund their own growth and pay sustainable dividends. Low leverage is also considered important. Qualitative factors. The manager looks for companies with hard to replicate business models, with low risk of substitution or from disruptive technologies. He also looks for intangible assets such as brands, which create the perception of uniqueness to customers. Pricing power is also important, and he avoids sectors subject to price regulation. These screens leave a universe of around 80 stocks that are investable at the right price. The manager creates valuation models for all stocks in this universe based on Cashflow Return on Investment. He then forms the portfolio, primarily from the stocks with the highest projected returns based on these models. However, reliability of returns, diversification and level of dividends are also taken into account.
Past performance is not a guide to future performance. View full risk warning