Man GLG UK Income Fund Professional Accumulation Shares (Class C)

UK Equity Income

Rated Fund 2018-19. Complementary to more index-aware funds

Man GLG UK Income scooped a number of titles during 2018, including a bronze Morningstar analyst rating and Money Observer’s Best Larger UK Equity Income Fund award.

It aims to achieve a level of income above the FTSE All-Share index together with some capital growth, by investing primarily in UK equities or the equities of companies that derive a substantial part of their revenues from activities in the UK.

Its 4.5% yield is comfortably ahead of the FTSE All-Share’s 4.2% and dividends are paid quarterly.

Manager Henry Dixon has made his name running non-income focused funds. He seeks out dividend growth as opposed to the absolute level of yield, and he runs a multi-size portfolio with a distinct bias towards small UK dividend-payers.

Because the fund does not hold many of the names typically owned by larger dividend-focused funds, its returns will probably be more volatile than those of its competitors. It could be seen as complementary to other, more well-known and index-aware funds.

Dixon, who takes a value-based investment approach, has produced some exceptional outperformance over the short and medium term, despite the value style being out of favour.

Darius McDermott, managing director at FundCalibre, the fund ratings and research provider, says: “We wouldn’t expect him to do as well as he has in a growth environment.”

The fund has 65 holdings so is relatively concentrated. It can invest in the bonds of a company where the team’s analysis of its capital structure suggests there is more attractive capital upside and income potential in its bonds than its equities. At the end of 2018 it had more than 10% in bonds

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Man GLG UK Income Fund Professional Accumulation Shares (Class C)
Manager
Man Fund Management UK Limited
Type
Open Ended Investment Company
ISIN
GB00B0117C28
Sector
UK Equity Income
Launched
25/05/2004
OCF
0.9 %
Risk Rating
3
3 Year Sharpe
1.01
3 Year Alpha
5.06
Yield
5.8 %
Benchmark
FTSE AllSh TR GBP
The objective of the Fund is to achieve a level of income above the FTSE All Share Index together with some capital growth through investing, directly or indirectly, primarily in UK equities or in equities of companies which derive a substantial part of their revenues from activities in the UK.
Holding %
GlaxoSmithKline PLC 4.89 %
British American Tobacco PLC 3.88 %
Imperial Brands PLC 3.62 %
Royal Dutch Shell PLC Class A 3.35 %
Royal Dutch Shell PLC B 3.14 %
BP PLC 3.02 %
International Consolidated Airlines Group SA 2.96 %
QinetiQ Group PLC 2.89 %
Legal & General Group PLC 2.68 %
Anglo American PLC 2.39 %
Region %
United Kingdom 90.37 %
Sector %
Financial Services 29.62 %
Industrials 14.42 %
Energy 13.66 %
Consumer Cyclical 12.75 %
Consumer Defensive 10.79 %
Basic materials 8.89 %
Healthcare 6.59 %
Name
Man Fund Management UK Limited
Address
London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Henry Dixon
Joined 11/15/2013

Henry Dixon is a Portfolio Manager on the UK Equities team at Man GLG, having joined in October 2013. Prior to joining Man GLG, Henry was a Portfolio Manager and Founder of Matterley where he ran their flagship fund of the same strategy. Prior to that he worked at New Star, and The Family Charities Ethical Trust.

Data provided by Morningstar.

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