fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

TB Evenlode Income D

  • 244.05p
    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.

  • 369.69p
    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!

  • 0.67%
    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).

  • 0.67%
    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.

  • 2.50%
    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 22 October 2021

The fund aims to deliver a combination of healthy dividend income and capital growth over rolling periods of five years. Manager Hugh Yarrow invests in mainly large-cap UK equities which provide a sustainable dividend with the ability to grow consistently in real terms. The portfolio also includes selected US and European stocks. Yarrow uses a bottom-up investment process including quantitative screening to find quality growth companies with high returns on capital and strong free cash flow. The fund’s holdings include drinks giant Diageo, recruitment group Hays and tech titan Microsoft.

Fund summary

Sector UK All Companies
Structure OEIC
Launched
Size £3,639m
Yield 2.50%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 30 Oct

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.67%
Ongoing charges figure 0.67%

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Investment process

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.

Manager Hugh Yarrow is very experienced in UK Income investing, having launched this fund in 2009. He has a clear and consistent investment philosophy, pursuing a high conviction approach to finding quality growth firms. Yarrow is supported by a strong 13-person team including fund manager Ben Peters, who has also worked on the fund since the beginning and runs the Evenlode Global Income Fund in a similar fashion. The team, also comprising three dedicated stewardship analysts, works collegiately challenging and sharing ideas. The fund may tend to lag in rising markets, but it has historically delivered strong and consistent outperformance. This is a decent option in for income-focused UK exposure, given its balance of both quality and valuation. Note that the fund sits in the UK All Companies sector, so whilst it has an attractive yield it is likely to be lower than pure UK income funds.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 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

Absolute 0.00% ()
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

Consumer Goods 30.00%
Media 18.00%
Support Services 13.00%
Technology 11.00%
Health Care 10.00%
Financials 8.00%
Engineering 6.00%
Real Estate 2.00%
Chemicals 1.00%
Money Market 1.00%

Portfolio

30-40 stocks, max 50 stocks

Key Investor Information - Income

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Key Investor Information - Accumulation

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