TB Evenlode Income B Income

UK Equity Income

Rated Fund 2015-2018. Complement to deep value funds

TB Evenlode Income won Money Observer's Best Larger UK Equity Income Fund award in 2016 — a crown it retained last year.Its yield is 3.2 per cent and income is paid quarterly. Its manager Hugh Yarrow and co-manager Ben Peters pursue a distinctive approach. They look to buy companies that are able to grow sustainably without needing to reinvest much capital back into the business each year to generate growth. Their rationale is that these companies will have more cash available to pay to shareholders.For income-seekers looking to achieve diversity, their approach acts as a good complement to funds that focus on deep value and higher-yielding companies.Investing in asset-light, high-return businesses results in a portfolio that is quite different from the UK market, which means the fund will be out of step with market trends at times. One of the reasons is that this focus causes the managers to avoid some large sectors, such as banks and oil producers or miners.It has a minimum of 80 per cent in UK shares with the balance in overseas shares or cash, and has performed particularly well since the Brexit referendum, given its allocation to larger, dollar-earning companies. There are less than 40 holdings in the portfolio, but the managers contend that they believe in quality over quantity.

The fund was forced to move from the Investment Association's UK equity income sector into the UK all companies sector on account of an insufficient yield. It could have returned to its former sector last year, but the managers opted not to as they did not want to be constrained by the sector's yield requirements.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
TB Evenlode Income B Income
Manager
T. Bailey Fund Services Limited
Type
Open Ended Investment Company
ISIN
GB00BD0B7D55
Sector
UK All Companies
Launched
01/09/2017
OCF
0.9 %
Risk Rating
3
3 Year Sharpe
1.50
3 Year Alpha
5.95
Yield
2.5 %
Holding %
Unilever PLC 8.22 %
Diageo PLC 7.61 %
RELX PLC 5.02 %
Sage Group (The) PLC 4.59 %
Compass Group PLC 4.34 %
Smiths Group PLC 3.79 %
Smith & Nephew PLC 3.30 %
GlaxoSmithKline PLC 3.21 %
Fidessa Group PLC 3.14 %
AstraZeneca PLC 3.10 %
Region %
United Kingdom 87.19 %
United States 8.98 %
Sector %
Consumer Cyclical 26.78 %
Consumer Defensive 25.02 %
Technology 17.80 %
Healthcare 12.82 %
Industrials 11.54 %
Name
T. Bailey Fund Services Limited
Address
NG1 6FJ, Nottingham, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Data provided by Morningstar.

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