Rathbone Income Fund Institutional Inc

UK Equity Income

Rated Fund 2014-2018. A solid choice for rising income

Rathbone Income is a fund that income investors are likely to be able to put in their portfolio and forget about. That is because it has the best record among open-ended equity funds for paying rising dividends -- last year achieving its 23rd increase out of the past 24 years. Its current yield is 3.7 per cent and it pays income half-yearly. The fund can invest in dividend-paying companies of any size and has a concentrated portfolio of 30 to 50 holdings. Carl Stick, its manager since 2000, believes that adding further holdings to try to spread risk is only distracting.Stick's investment style is a mixture of both 'value' and 'growth': growth, because he wants the dividend stream to grow year on year and value because he wants to buy shares that offer the greatest value and provide a high earnings yield.He looks for the best companies he can find relying on 'simple ideas' such as earnings and dividend growth, a recognition of quality businesses, management teams and products, and also paying the right price for that. Although most of his holdings are in the FTSE 100 index, around 33 per cent of the portfolio is invested in medium-sized and smaller companies for diversification.Stick believes he often gains an edge from taking a longer-term perspective of business prospects, looking beyond short-term headwinds to a time when underlying characteristics are re-asserted. His average holding period is four to five years. The fund's volatility is low.

Narrative and ratings content all as of 01 January 2018.

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Name
Rathbone Income Fund Institutional Inc
Manager
Rathbone Unit Trust Management Limited
Type
Unit Trust
ISIN
GB00B7FQLQ43
Sector
UK Equity Income
Launched
01/03/2012
OCF
0.79 %
Risk Rating
3
3 Year Sharpe
0.80
3 Year Alpha
-0.24
Yield
3.8 %
Benchmark
FTSE AllSh TR GBP
The objective of the fund is to achieve above average and maintainable income but without neglecting capital security and growth. The Manager intends to achieve the objective primarily through the purchase of ordinary shares with an above average yield. There is no restriction on the economic sectors or geographic areas in which the fund may invest.
Holding %
GlaxoSmithKline PLC 4.50 %
Unilever PLC 4.43 %
BP PLC 4.11 %
Royal Dutch Shell PLC B 4.06 %
AstraZeneca PLC 3.82 %
Reckitt Benckiser Group PLC 3.44 %
RELX PLC 3.33 %
Legal & General Group PLC 3.26 %
Bunzl PLC 3.05 %
British American Tobacco PLC 2.99 %
Region %
United Kingdom 86.55 %
United States 7.24 %
Sector %
Consumer Cyclical 20.96 %
Consumer Defensive 17.90 %
Financial Services 14.49 %
Healthcare 14.21 %
Energy 11.33 %
Industrials 7.73 %
Utilities 7.66 %
Name
Rathbone Unit Trust Management Limited
Address
W1J 5FB, London, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Carl Stick
Joined 01/01/2000

Mr. Stick joined Rathbone Unit Trust Management Limited after they acquired Neilson Cobbold in 1996, Carl transferred to London in August 1998, where he became an assistant fund manager for the unit trust business, working alongside Hugh Priestley. 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.

Data provided by Morningstar.

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