Seeking to provide an attractive and growing level of income
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, 01.10.17. Forecasts are inherently limited and are not a reliable indicator of future results.
Blake Hutchins, Portfolio Manager - UK Equity Income Fund
We believe that:
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.
*Targets may not be achieved
The yield reflects the amount that may be distributed over the next 12 months as a percentage of the Fund’s net asset value per share, as at the date shown, based on a snapshot of the portfolio on that day. The yield number in brackets, it is calculated in the same way, however, as the charges of the share class are deducted from capital rather than income, it shows the level of yield had these charges been deducted from income. Yields do not include any preliminary charge and investors may be subject to tax on their distributions. The effect of taking expenses from capital is to increase income whilst reducing capital to an equivalent extent and may constrain future capital and income growth.
All information is as at 30.09.2017 unless otherwise stated.
The Fund’s investment objectives and performance targets will not necessarily be achieved and there is no guarantee that these investments will make profits; losses may be made. Past performance is not a reliable indicator of future results.
Fund specific risks:
Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean the value of the Fund may decrease whilst more broadly invested funds might grow.
Derivatives: The use of derivatives is not intended to increase the overall level of risk in the Fund. However, the use of derivatives may still lead to large changes in the value of the Fund and includes the potential for large financial loss.
Charges from capital: For Inc-2 shares classes, expenses are charged to the capital account rather than to income. This has the effect of increasing income (which may be taxable) whilst reducing capital to an equivalent extent. This could constrain future capital and income growth.
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. bankruptcy), the owners of their equity rank last in terms of any financial payment from that company.
Concentrated portfolio: The Fund invests in a relatively small number of individual holdings. This may mean the value of the Fund may fluctuate more widely than more broadly invested funds.