Navigation Search
Close

Select your location and role to view strategy and fund content

United Kingdom
  • Global homepage
  • Australia
  • Belgique
  • Botswana
  • Denmark
  • Deutschland
  • España
  • Finland (Suomi)
  • France
  • Hong Kong (香港)
  • Ireland
  • Italia
  • Luxembourg
  • Namibia
  • Nederland
  • Norway
  • Österreich
  • Portugal
  • Singapore
  • South Africa
  • Sweden (Sverige)
  • Switzerland
  • United Kingdom
  • United States
  • International
Professional Investor
  • Professional Investor
  • Individual Investor

Tailored for investment professionals this site provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future. We use cookies to ensure that we give you the best experience on our website. This includes cookies from third parties. Such third party cookies may track your use of our website. By continuing you are confirming that you are happy to receive all cookies on our website. Please refer to our Cookie Policy for further information, including steps to take to disable cookies.

By entering you agree to our Terms & Conditions

Investec UK Equity Income Fund

“Sustainable dividend growth, supported by cashflow”

Blake Hutchins – Portfolio Manager Investec UK Equity Income Fund

UK Equity Income Fund

The Investec UK Equity Income Fund aims to provide an attractive level of income by investing in cash generative, attractively valued, quality businesses, with low capital intensity. A conviction-driven UK equity income portfolio, it focuses on sustainable dividend growth.

Blake Hutchins

Blake Hutchins

Portfolio Manager

Why choose this fund?


Total return approach that combines income and capital growth.

Conviction-driven UK equity income portfolio focused on sustainable dividend growth, not dividend yield.

Focus on cash generative, attractively valued, quality businesses with low capital intensity. 

Fund facts

Sector: IA UK All Companies
Launch Date: 29 January 2015
OCF (I SHARES): 0.84%
Sedol: BV9G3J5
ISIN: GB00BV9G3J51
Risk/Reward Profile:
1234567

Quick links

Focus on dividend growth, not dividend yield

The Fund is focused on companies with sustainable dividend growth, rather than those with a high initial yield. We believe that companies with low capital intensity are in a better position to cover their dividends through cashflow.

Free cashflow cover of dividend (2018E)


Source: Citi Income Report, October 2017.

What makes us different?

We believe that:

  • Sustainable dividend growth, supported by cashflow, is more important than dividend yield.
  • Cash generative companies with sustainably high or improving returns on capital, and low capital intensity, are those most likely to grow their dividends and deliver attractive real total returns.
  • A quality bias and a valuation focus helps to mitigate downside risk and avoid a permanent loss of capital.

Research framework

A Company Valuation Framework is at the core of the investment team’s research process. Success is based on the strength of three key factors — business model, financial model, and capital allocation — ultimately, however, valuation is key.

Source: Investec Asset Management.

Quality companies for growth and income

Specific risks

Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow.

 

Important Information

All information is as at 31.03.19 unless otherwise stated.
Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable.
If applicable FTSE data is sourced from FTSE International Limited (‘FTSE’) © FTSE 2019. Please note a disclaimer applies to FTSE data and can be found at www.ftse.com/products/downloads/FTSE_Wholly_Owned_Non-Partner.pdf
Fund ratings may be provided by independent rating agencies based on a range of investment criteria, and do not constitute investment advice by Investec Asset Management. For a full description of the ratings please see www.investecassetmanagement.com/ratings.
Dynamic Planner® is a registered trademark of Distribution Technology. The Elite Rating™ system is proprietary to FundCalibre Ltd., but should not be taken as a recommendation.