AXA Framlington Monthly Income Fund Z GBP Inc

UK Equity Income

Rated Fund 2018-19. Ideal for monthly income seekers

Axa Framlington Monthly Income was added to our Rated Funds last year and was subsequently highly commended in the Best Larger UK Equity Income Fund category of Money Observer’s awards in 2018.

As the fund’s name suggests, it pays a monthly dividend, so it is ideally suited to those looking for a regular income stream from their investments to meet day-to-day living expenses. Among them are those drawing income from their pension pots instead of buying an annuity at retirement, and seeking to invest in funds that produce a sufficient natural yield to keep pace with withdrawals and avoid eating into capital.

Fund manger George Luckraft takes an unconstrained investment approach to deliver a current annual yield of 5% from 94 stocks.

He pioneered the ‘barbell’ strategy, which combines traditional high-yielding equities with lower-yielding growth stocks. The portfolio is built around large international firms paying a high yield: Royal Dutch Shell, BP, HSBC and GlaxoSmithKline are its largest holdings. Luckraft focuses on the sector in expectation that in a tough economic environment the strong will get stronger.

He balances these with fast-growing smaller companies. Unusually for an equity income fund, a quarter of the fund is in Alternative Investment Market shares. These often have little or no yield, so the fund can still be successful when traditional income-paying stocks are unloved.

Luckraft holds stocks for the long term – turnover runs at less than 5% a year – and has a successful long-term record. But his bias to often illiquid small and medium-sized firms can make his performance more volatile than his peers.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
AXA Framlington Monthly Income Fund Z GBP Inc
Manager
AXA Investment Managers UK Ltd
Type
Unit Trust
ISIN
GB00B7MMK577
Sector
UK Equity Income
Launched
16/04/2012
OCF
0.84 %
Risk Rating
2
3 Year Sharpe
1.04
3 Year Alpha
2.53
Yield
4.6 %
Benchmark
FTSE AllSh TR GBP
The aim of this Fund is to provide a monthly income with potential for long-term growth of capital. The Fund invests primarily in shares of UK listed companies which the Manager believes will provide above-average income and capital growth. The Fund invests in companies of any size. The Fund also invests in bonds issued by companies or governments. The Manager selects shares based upon analysis of a company’s prospects for future growth in dividend payments, financial status, quality of its management, expected profitability and prospects for growth.
Holding %
Royal Dutch Shell PLC B 5.99 %
BP PLC 5.00 %
HSBC Holdings PLC 3.87 %
GlaxoSmithKline PLC 3.71 %
iEnergizer Ltd 2.59 %
Anexo Group PLC 2.40 %
British American Tobacco PLC 2.38 %
Tarsus Group PLC 2.38 %
Intermediate Capital Group PLC 2.24 %
Craneware PLC 2.18 %
Region %
United Kingdom 93.00 %
Sector %
Financial Services 23.06 %
Energy 15.22 %
Consumer Cyclical 13.40 %
Industrials 8.85 %
Basic materials 8.32 %
Technology 7.61 %
Healthcare 7.50 %
Consumer Defensive 6.58 %
Real Estate 5.55 %
Name
AXA Investment Managers UK Ltd
Address
EC1A 7NX, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

George Luckraft
Joined 09/09/2002

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.

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.