Rathbone Income Fund Institutional Inc

UK Equity Income

Rated Fund 2014-19. A solid choice for rising income.

Rathbone Income is a fund income investors are quite likely to be able to put in their portfolio and then forget about. That is because it has the best record among open-ended equity funds for paying rising dividends. Last year it achieved its 24th increase over the past 25 years.

Its current yield is 4.3% and it pays income half-yearly. The fund can invest in dividend-paying companies of any size and has a concentrated portfolio of 30-50 holdings (45 at present). Carl Stick, its manager since 2000, believes adding further holdings to try to spread risk is only distracting.

He was joined by Alan Dobbie as co-manager in October 2018. They have worked together on UK equity income mandates for more than 13 years.

The managers’ investment style is a mixture of both value and growth – growth because they want the dividend stream to grow year on year, and value because they want to buy shares that offer the greatest value and provide a high earnings yield. Capital preservation is just as important as income growth to them.

They look for the best companies they can find and rely on simple ideas such as earnings and dividend growth, recognition of quality businesses, management teams and products, and on paying the right price for such businesses.

Although two-thirds of the portfolio is in the FTSE 100 index, almost one-fifth is in small and medium-sized companies and a further 10% is in overseas names, for diversification.

The managers believe they often gain an edge from taking a longer-term perspective on business prospects, looking beyond short-term headwinds to a time when underlying characteristics will be re-asserted.

Narrative and ratings content all as of 01 January 2019.

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Rathbone Income Fund Institutional Inc
Rathbone Unit Trust Management Limited
Unit Trust
UK Equity Income
0.78 %
Risk Rating
3 Year Sharpe
3 Year Alpha
4.2 %
Aims to deliver an annual income that is in line with or better than that of the FTSE All-Share Index over any rolling three-year period (any income received is re-invested for growth). It will invest at least 80% in UK-listed shares, with the remainder in global shares, cash, short-term deposits and UK government debt.
Holding %
GlaxoSmithKline PLC 4.48 %
Reckitt Benckiser Group PLC 4.45 %
BP PLC 4.40 %
Royal Dutch Shell PLC B 4.34 %
Legal & General Group PLC 3.88 %
National Grid PLC 3.37 %
British American Tobacco PLC 3.21 %
Lloyds Banking Group PLC 3.11 %
DCC PLC 2.96 %
SSE PLC 2.93 %
Region %
United Kingdom 85.87 %
United States 6.52 %
Eurozone 5.29 %
Sector %
Consumer Defensive 19.80 %
Financial Services 17.50 %
Consumer Cyclical 12.67 %
Energy 12.52 %
Utilities 10.69 %
Healthcare 10.64 %
Communication Services 8.16 %
Rathbone Unit Trust Management Limited
W1J 5FB, London, United Kingdom
Legal Structure
Unit Trust


Alan Dobbie
Joined 10/05/2018

Alan Dobbie joined Rathbones in October 2005. He became co-manager of the Rathbone Income Fund in October 2018. Alan has previously managed and co-managed a number of UK, European and global equity funds for Rathbones. He graduated from the University of Strathclyde with an MSc Finance and also holds degrees in Accounting & Finance and Chemical Sciences from the Universities of Glasgow and Edinburgh, respectively. Alan holds the Investment Management Certificate (IMC) and is a Chartered Financial Analyst (CFA) charter-holder.

Carl Stick
Joined 01/01/2000

Mr. Stick transferred to London in August 1998, after Rathbones acquired Neilson Cobbold in 1996. Carl became an assistant fund manager for the unit trust business, working alongside Hugh Pristley. Carl is a Board Director of Rathbone Unit Trust Management and plays a key role in the development of Rathbones' investment process and business strategy. Carl graduated from the University of Southampton in 1991 with a BA Honours degree in English Literature. He is also I.I.M.R.-qualified and a Fellow of the Securities Institute.

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