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.See all Money Observer rated funds
|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 %|
|United Kingdom||97.75 %|
|Financial Services||20.03 %|
|Consumer Cyclical||14.49 %|
|Basic materials||10.87 %|
|Consumer Defensive||9.37 %|
|Real Estate||5.22 %|
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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