UK Equity Income Investment Strategy

Strategy highlights

: Focuses on high-quality, cash-generative stocks with reliable dividend yields

Designed to yield at least 110% of the FTSE All-Share Index over a rolling three-year period

At least 80% of portfolio invested in UK equities

Stock selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach

Learn more about our multidimensional investment philosophy

Strategy profile

Objective: The strategy aims to achieve income over an annual period together with capital growth over the long term (5 years or more).
Performance benchmark: FTSE All-Share*
Typical number of equity holdings: 30 to 50
Literature: Application form
Key Investor Information Document (KIID)
Prospectus
: * The FTSE All-Share index is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the performance benchmark.

Investment team

The strategy is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.

Want to find out more?

David Cumming

Head of UK Equities team

Tim Lucas

Portfolio manager, UK Equities team

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.

Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.

Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.

Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.

Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.

Liquidity risk: The strategy may not always find another party willing to purchase an asset that the strategy wants to sell which could impact the strategy’s ability to sell the asset or to sell the asset at its current value.

Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.

Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.