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)
Forecasts are inherently limited and are not a reliable indicator of future results.
Source: Citi Income Report, 01.10.17.
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.
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.
Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.
Investment objectives and performance targets may not necessarily be achieved, losses may be made.
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. 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. 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. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios.
All information is as at 30.09.2017 unless otherwise stated.
*Targets may not be achieved.