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The fund's investment objective is to produce attractive long-term total returns, with an emphasis on income. Manager Hugh Yarrow invests in a concentrated portfolio of UK companies of all sizes, as well as selected US and European large caps. His investment process emphasises quality - consistency of returns. This typically leads to a bias to more stable sectors such as consumer goods and health care and away from more volatile industries like mining and banks, though the fund generally has more cyclicality than other funds with a quality style.
|Sector||UK All Companies|
|Dividends paid||31 Jan, 30 Apr, 31 Jul, 30 Oct|
|Standard initial charge||0.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.65%|
|Ongoing charges figure||0.85%|
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.
Yarrow worked at Rathbones before founding boutique Evenlode in 2009. Though his track record in the UK Equity Income sector is relatively short, his performance stands comparison with the best in the business. He also benefits from running a smaller, more flexible fund than his rivals, whose assets often number in the billions. His investment style, which focuses on "quality" companies, typically provides a degree of resilience in falling markets, but also leads it to often lag rising markets.
|High yield bonds||0|
The fund can invest in UK companies of all sizes plus US and European large caps. These are screened on: Quantitative factors. Most import of these is high and consistent profitability – this is seen as an indicator of sustainable competitive advantage. The manager also looks for asset-light companies with low capital expenditure, as these can fund their own growth and pay sustainable dividends. Low leverage is also considered important. Qualitative factors. The manager looks for companies with hard to replicate business models, with low risk of substitution or from disruptive technologies. He also looks for intangible assets such as brands, which create the perception of uniqueness to customers. Pricing power is also important, and he avoids sectors subject to price regulation. These screens leave a universe of around 80 stocks that are investable at the right price. The manager creates valuation models for all stocks in this universe based on Cashflow Return on Investment. He then forms the portfolio, primarily from the stocks with the highest projected returns based on these models. However, reliability of returns, diversification and level of dividends are also taken into account.
|Fund data updated on||20/09/18|
|High yield bonds||0|
As at: 31/07/2018
5.0823%Compass Group Plc
3.6562%Reckitt Benckiser Group Plc
3.0661%Smith & Nephew
|Retailers - General||1%|
- 30-40 stocks, max 50 stocks - Max 5% of the underlying company's equity
Up to 20% in overseas stocks.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Yarrow founded Evenlode, a brand of Wise Investments, in 2009. He previously worked for Rathbones from 2002 to 2009, becoming an Investment Manager in 2006. He has a 1st class MA Honours in Philosophy and Mathematics from Edinburgh University and is a fellow of the Chartered Institute for Securities and Investment and holds the Investment Management Certificate. He has climbed Mt Kilimanjaro and Mt Blanc, and has taught mathematics at an all girls school in Fiji. Ben Peters has worked on the fund since launch and became co-manager in 2012.
Hugh Yarrow has 7.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.37%. During the worst period of relative performance (from June 2010 - February 2011) there was a decline of 7% relative to the index. The worst absolute loss has been 31%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
|Periods of worst performance|
|Absolute||-31% (May 2008 - February 2009)|
|Relative||-7% (June 2010 - February 2011)|
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.