fund
Threadneedle UK Z
A mainstream UK fund., with a slight mid cap bias.
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145.32p
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.
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177.45p
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?
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0.00%
Initial chargeSome 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!
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0.75%
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).
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0.87%
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.
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2.20%
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…
Following Threadneedle's Pan-European investment process, this fund aims to outperform in all market conditions. Therefore the style is neither value or growth but a mixture of the two. The portfolio has a large cap bias, which is usual for a fund that stands at over £1bn. This is now run as a mirror fund to the closed-ended UK Select Trust (LSE:UKT) run by the same manager.
Fund summary
| Sector | UK All Companies |
| Structure | OEIC |
| Launched | September, 2012 |
| Size | £1,682m |
| Yield | 2.20% |
| Charging basis | Income |
| Dividends paid | 7 May, 7 Nov |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.87% |
Allocation
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Investment process
The aim of the fund is to achieve long term capital growth from a portfolio of primarily UK equities. This is a conservatively managed fund which very much reflects the team based strategy of Threadneedle. That is, the portfolio is required to feature all stocks which are included on the Preferred List, with each holding at least being 0.25% overweight against the benchmark. The preferred list is put together by the Pan-European Investment team which comprises around 30 investment professionals. The view is that best investment ideas should be spread across all UK mandates. The fund manager may include further stocks as long as stock weighting controls are met.
Manager research
Average monthly relative returns
- 16/17 -0.24%
- 17/18 -0.12%
- 18/19 -0.19%
- 19/20 0.32%
- 20/21 -0.13%
Bestinvest MRI
- 3 years 0.00%
- 5 years -0.07%
- Career 0.12%
- 3 years 62.90%
- 5 years 49.20%
- Career 99.10%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Chris Kinder
Kinder joined Threadneedle in 2010 from RWC Partners. He has also worked at Govett Investments, gaining experience in smaller companies analysis, and spent four years as an accountant at PricewaterhouseCoopers. He is a Chartered Financial Analyst and holds a degree in Modern European Languages from Durham University.
Track record
Chris Kinder has 10.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.12%. During the worst period of relative performance (from March 2016 - October 2020) there was a decline of 11% relative to the index. The worst absolute loss has been 30%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
Periods of worst performance
| Absolute | -30.00% (December 2019 - March 2020) |
| Relative | -11.00% (March 2016 - October 2020) |
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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Top 10 holdings
Data accurate as at 31 May 2020
| 4.9% | Glaxosmithkline |
| 4.4% | Reckitt Benckiser Group Plc |
| 4.4% | British American Tobacco |
| 4.2% | Rio Tinto |
| 4.2% | Diageo |
| 3.7% | Relx Plc |
| 3.3% | Unilever |
| 3.2% | Prudential Plc |
| 2.7% | London Stock Exchange Group |
| 2.6% | Royal Dutch Shell Plc |
| Source: Trustnet |
Sector breakdown
| Consumer Goods | 22.00% |
| Financials | 19.00% |
| Consumer Services | 18.00% |
| Industrials | 16.00% |
| Basic Materials | 8.00% |
| Health Care | 7.00% |
| Oil & Gas | 4.00% |
| Technology | 3.00% |
| Telecommunications | 2.00% |
| Cash & Cash Equivalents | 1.00% |
Portfolio
Approximately 100 stocks are held within the portfolio.
Constraints
The large sectors are limited to +/-5% with FTSE 100 stocks +/-3%, Mid Cap +/-2% and Small Cap +/-1%.