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, March 2019.
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.
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.
All information is as at 30.06.19 unless otherwise stated.
¹ Sector changed from IA UK Equity Income on 30 April 2019.
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.