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ASI UK INCOME UNCONSTRAINED EQUITY R

ASI UK INCOME UNCONSTRAINED EQUITY R - Overview

Overview of ASI UK INCOME UNCONSTRAINED EQUITY R Buy in ISA Buy in Investment Account

The fund targets income and some capital growth by investing in a multi-cap portfolio of UK equities. Manager Thomas Moore follows Standard Life’s “Focus on Change” investment philosophy, relying on his and the UK team’s ability to forecast earnings surprises ahead of the market. Moore has a greater focus on dividend and earnings growth compared to rival funds, something that leads him to have substantial weights in mid and small-cap stocks and lower exposure to the traditional FTSE 100 income names.

  • Standard Initial Charge 4.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector UK Equity Income
Structure OEIC
Launched February, 2007
Size £1,255m
Yield 4.7%
Charging basis Capital
Dividends paid 28 Feb, 30 Jun

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.80%
Ongoing charges figure 1.90%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Whilst 'megacap' businesses might pay large dividends now, the manager believes the superior growth prospects of mid and small-cap companies generally make them better investments in the long term. Since he took over the fund in 2009 this has proven to be true, with performance significantly in excess of the benchmark. This more aggressive approach places significant emphasis on Moore’s stockpicking ability, but he benefits from the support of a highly regarded team based in Edinburgh. The fund tends to be more volatile than its peers, but given the improved total return prospects we believe it is an excellent holding for investors with longer timeframes. This fund is also an ideal partner for some of the prominent funds in the sector, which tend to be more defensive and focus more on large companies.

Portfolio

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0
Allocation Proportion(%)
UK 95
Europe 0
North America 5
Japan 0
Pacific 0
Emerging Markets 0
Allocation Proportion(%)
Large Caps 35
Mid Caps 23
Small Caps 42
View all performance data for this fund

Investment process

The manager sits in Standard Life’s UK equity team and almost all his stocks are buy-rated by the team’s analysts, with their best ideas “Winners List” a particular focus. However, Moore is his own analyst on financials and small cap ideas. The team follows Standard Life’s “Focus on Change” investment philosophy, looking to identify changes in companies and industries ahead of the market and hence that haven’t been priced in. This should enable portfolio companies to grow their earnings and also benefit from positive sentiment, growing their earnings multiples. On this mandate the manager also has a focus on dividend growth. He believes the largest dividend paying stocks in the UK often have poor earnings and dividend growth prospects and are therefore unattractive investments. He focuses his research further down the market cap scale, particularly in the FTSE 250, to find stocks that have an attractive yield but where there is scope for earnings and dividend growth. This open-ended fund is run almost identically to the Standard Life Equity Income Investment Trust.

Live feed

Bid price(inc) 46.51p
Accum units 75.09p
Fund commentary 19/04/16
Fund data updated on 20/09/19

Asset allocation

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0

Equity Geographic

Allocation Proportion(%)
UK 95
Europe 0
North America 5
Japan 0
Pacific 0
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 35
Mid Caps 23
Small Caps 42

Top 10 holdings

As at: 31/07/2019
5.5% Royal Dutch Shell
5% John Laing Group Plc
3.9% Bp
3.3% Glaxosmithkline
3.2% Ashmore Group Plc
3.1% National Express Group
3% Close Brothers Investment
2.7% Bae Systems
2.7% British American Tobacco
2.6% Aviva
Source: Trustnet

Sector breakdown

Financials 37%
Oil & Gas 17%
Industrials 15%
Consumer Services 10%
Consumer Goods 7%
Basic Materials 6%
Health Care 3%
Utilities 2%
Technology 1%
Money Market 1%

Portfolio details

30-60 stocks.

Constraints

Typical 1-5% in a single stock. Max 30% in one sector. Max 5% cash. VP 07.30.
There are some limits placed on the portfolio but these could result in significant divergences from the benchmark from time to time.

Average monthly relative returns Bestinvest MRI
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
1.12% -0.97% -0.23% 0.11% -1.36%   -0.49% -0.27% 0.13% 8.10% 30.20% 87.90%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Thomas Moore

Manager. Moore is an investment director on Standard Life’s UK Equities team as well as analyst for the banking and financial services sectors. He joined the company in 2002, initially working as an analyst before moving to the Emerging Markets equity team in 2003, where he managed EMEA portfolios. He became an investment director in 2005 and then moved to the UK Equities team in 2006. Before joining Standard Life he worked for Schroders in UK equities and emerging markets from 1998. Moore gained a BA (Hons) in economics & politics from Exeter University in 1998, and is also an associate of the CFA Society of the UK.

Track record

Thomas Moore has 10.7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.13%. During the worst period of relative performance (from December 2015 - August 2019) there was a decline of 28% relative to the index. The worst absolute loss has been 17%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 88%.

Periods of worst performance
Absolute -17% (April 2011 - September 2011)
Relative -28% (December 2015 - August 2019)

Other funds managed

Sector record since January 2009 (11 yrs)




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.

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