AXA Framlington Managed Income Fund Z GBP Acc

Sterling Bonds

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
Name
AXA Framlington Managed Income Fund Z GBP Acc
Manager
AXA Investment Managers UK Ltd
Type
Unit Trust
ISIN
GB00B6RPX228
Sector
£ Strategic Bond
Launched
16/04/2012
OCF
0.59 %
Risk Rating
4
3 Year Sharpe
1.30
3 Year Alpha
5.50
Yield
3.5 %
Benchmark
IA OE Sterling Strategic
The fund seeks to generate a high level of income with capital growth. Investment will be principally in convertible securities, corporate bonds and other fixed income securities (including government securities) of predominantly, but not exclusively, UK issuers. Investment will be in convertible and fixed interest securities which, in the Manager’s opinion, have yield and value characteristics which create attractive total return potential. The Manager may also invest, to a limited extent, in ordinary shares.
Holding %
United Kingdom of Great Britain and Northern Ireland 4.5% 3.88 %
HSBC Bank Funding (Sterling 2) L.P. 5.86% 1.99 %
TALK TALK TELECOM GROUP PLC 5.38% 1.83 %
Legal & General Group plc 5.88% 1.82 %
AA Bond Co Limited 5.5% 1.77 %
Rio Tinto Finance Plc 4% 1.76 %
Arrow Global Finance plc 5.12% 1.75 %
Centrica plc 5.25% 1.71 %
Prudential plc 5% 1.70 %
Premier Oil 6.5% 1.68 %
Region %
United Kingdom 96.49 %
Sector %
Communication Services 42.35 %
Technology 29.60 %
Real Estate 20.35 %
Financial Services 7.69 %
Name
AXA Investment Managers UK Ltd
Address
EC1A 7NX, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

George Luckraft
Joined 09/30/2002

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.

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