Factsheet: AXA Framlington Monthly Income Z GBP Inc

UK Equity Income

New for 2018. Ideal for monthly income seekers

The lone newcomer to our core equity income choices for 2018, Axa Framlington Monthly Income is ideally suited to those looking for a regular income stream from their investments to meet day-to-day living expenses.The fund is the only constituent of the Investment Association's UK equity income sector to hold five FE Crowns and pay a monthly dividend.George Luckraft, the fund's manager since 2002, takes an unconstrained investment approach to deliver a current annual yield of 4.2 per cent. He pioneered the 'barbell' strategy, combining traditional high-yielding equities with lower-yielding growth stocks.The portfolio is built around international large companies paying a high yield: Royal Dutch Shell, BP and HSBC are its largest holdings. Luckraft focuses on the leaders within sectors on the expectation that in a tough economic environment the strong will get stronger.He balances these with fast-growing smaller companies. The manager has a successful long-term record, but his bias to often illiquid small and mid-sized companies can make his performance more volatile than that of peers.Poor stock selection following the 2008/09 financial crisis led to relative underperformance in an environment that should have suited Luckraft's allocation to small companies. This led Whitechurch Securities to move out of the fund, but the wealth manager has monitored progress over the past year and has praised a 'welcome return to form for the experienced manager'.

Narrative and ratings content all as of 01 January 2018.

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Name
AXA Framlington Monthly Income Z GBP Inc
Manager
AXA Investment Managers UK Ltd
Type
Unit Trust
ISIN
GB00B7MMK577
Sector
UK Equity Income
Launched
16/04/2012
OCF
0.85 %
Risk Rating
2
3 Year Sharpe
0.92
3 Year Alpha
3.61
Yield
4.3 %
Benchmark
FTSE AllSh TR GBP
The fund seeks to combine a regular income with the potential for long term capital growth. The Fund will invest mainly in equities and fixed interest securities. The Fund provides monthly income payable direct to a UK bank or building society account.
Holding %
Royal Dutch Shell PLC B 5.65 %
BP PLC 4.41 %
British American Tobacco PLC 3.94 %
HSBC Holdings PLC 3.88 %
GlaxoSmithKline PLC 3.39 %
Vodafone Group PLC 1.99 %
Central Asia Metals PLC 1.99 %
Intermediate Capital Group PLC 1.97 %
PRS REIT Ord 1.92 %
AstraZeneca PLC 1.88 %
Region %
United Kingdom 97.75 %
Sector %
Financial Services 20.03 %
Consumer Cyclical 14.49 %
Energy 13.43 %
Basic materials 10.87 %
Technology 10.77 %
Consumer Defensive 9.37 %
Healthcare 7.51 %
Real Estate 5.22 %
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.

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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.