Virgin UK Index Tracking

UK equity fund tracking the FTSE All-Share index. Cheaper options now exist.

  • 217.00p
    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.

  • -
    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?

  • 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!

  • 1.00%
    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).

  • 1.00%
    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.

  • 4.80%
    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 25 September 2020, fund data last updated 25 October 2013

This is a tracker fund, aiming to match the total returns of the FTSE All-Share Index after taking into account costs. This index comprises over 600 of the largest UK equities which together make up around 97% of the UK equity market by value. The fund buys all of the shares in the index, with the amount invested in each dependent on its market value.

Fund summary

Sector UK All Companies
Structure UNIT TRUST
Launched March, 1995
Size £2,308m
Yield 4.80%
Charging basis Income
Dividends paid May, Nov

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.00%

Allocation

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Investment process

This tracker fund follows a full replication process – it buys shares in every company in the UK's FTSE All-Share Index, with the amount invested in each company dependent on the percentage of the index they represent. This index is made up of the FTSE 100, the FTSE 250 and FTSE Small Cap indices - over 600 companies in total. This gives investors substantial diversification including some international exposure, though the portfolio can be concentrated by company size – the multinationals of the FTSE 100 make up around 85% of the index. Though primarily an equity fund, the manager will also use futures, a type of derivative which provides liquid exposure to the whole of the index. These are used to manage cash balances in the fund - by buying and selling futures the manager can regulate market exposure in response to inflows and outflows without the costs involved in trading all of the shares in the portfolio.

With annual charges of 1% this fund is expensive for a tracker – investors should consider switching into a cheaper alternative. The fund was innovative when it launched in 1995, providing retail investors with easy and cheap access to the UK stockmarket. However, an increase in the number of rival funds has dramatically raised competition and driven down costs, and the performance of tracker funds is largely dependent on how cheap they are.

Manager research

Average monthly relative returns

  • 15/16 0.06%
  • 16/17 -0.09%
  • 17/18 0.03%
  • 18/19 -0.03%
  • 19/20 0.16%

Bestinvest MRI

  • 3 years 0.05%
  • 5 years 0.03%
  • Career -0.08%
  • 3 years 77.90%
  • 5 years 74.50%
  • Career 28.80%

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

State Street Global Advisors

State Street Global Advisors (SSgA) is the asset management business of State Street Corporation, a provider of financial services to institutional investors with a history dating back over two centuries. SSgA has more than 400 investment professionals and over 2400 employees in total based around the world.

Track record

State Street Global Advisors has 22.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from March 1998 - March 2019) there was a decline of 21% relative to the index. The worst absolute loss has been 44%.

Periods of worst performance

Absolute -44.00% (December 1999 - January 2003)
Relative -21.00% (March 1998 - March 2019)

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 15 September 2019

5.5% Hsbc Hldgs
4.3% Royal Dutch Shell Plc
3.89% Astrazeneca Plc
3.69% Royal Dutch Shell Plc
3.45% Glaxosmithkline
3.3% Diageo
2.93% British American Tobacco
2.3% Unilever
2.09% Rio Tinto
1.72% Prudential Plc
Source: Trustnet

Sector breakdown

Oil & Gas 14.00%
Banks 10.00%
Industrials 9.00%
Financial Services 8.00%
Health Care 8.00%
Household Goods 8.00%
Resources 7.00%
Food, Beverages and Tobacco 6.00%
Insurance 5.00%
Travel 5.00%

Portfolio

The portfolio holds all of the 600+ constituents of FTSE All-Share Index.

Key Investor Information

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