AXA Framlington Managed Income Fund Z GBP Acc
Rated Fund 2017-2018. Run by a manager with equity expertise
As its name suggests, the main aim of this fund is to generate a high level of income; it currently yields almost 5 per cent. To do so, it invests primarily in bonds issued by companies, principally in the UK, that stand to provide above-average income. The lion's share of assets – more than 70 per cent – was in sterling corporate bonds at the end of 2017.
George Luckraft has managed the fund since 2002, when he joined Axa Investment Managers after 20 years of impressive performance at ABN Amro. In running the portfolio, Luckraft wants not only to produce a high income but also the potential for long-term capital growth, so when selecting securities he looks for those with yield and value characteristics that create the potential for attractive total returns.
He also has the flexibility to invest in government bonds and company shares. Despite this being a bond fund, Luckraft is head of UK equities at Axa and the fund had 12 per cent in shares at the end of 2017, the majority of which were UK-listed.
Luckraft selects corporate bonds and shares based upon analysis of a company's financial status, the quality of its management, expected profitability and prospects for growth.
Having an equity mindset for assessing a company's prospects and its ability to service its debts can also be important when investing in corporate bonds. By being on top of what is happening in stock market sectors, as well as
how individual companies are progressing, Luckraft can ascertain how the value of their bonds will be affected.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
George joined Framlington in 2002 and is the lead fund manager for the AXA Framlington Equity Income, AXA Framlington Managed Income and AXA Framlington Monthly Income Funds. Previously he worked for Carrington Pembroke (subsequently ABN AMRO and now Artemis Unit Trust Managers) where he was Head of UK Equities. George graduated from Cambridge with a degree in Engineering and Land Economy in 1980.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.