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
2
3 Year Sharpe
1.35
3 Year Alpha
6.46
Yield
3.3 %
The Fund aims to achieve long-term total returns, with an emphasis on income. The Fund will mainly be invested in UK listed shares, with the balance in overseas listed shares and cash. The Investment Manager aims to invest in a focused portfolio of shares offering a combination of high and growing cash-flows and low business risk in order to deliver both capital growth and income growth for the Fund. Investors can redeem units on demand, at the daily valuation point of 12 noon (UK time) when this is a normal business day in the UK. For income units, any income received is paid out to you quarterly. For accumulation units, any income received is reflected in the price of units. Recommendation: this fund may not be appropriate for investors who plan to withdraw their money in the short-term (within 5 years). The Fund should be viewed as a medium to long-term investment only.
Holding %
Unilever PLC 8.76 %
Diageo PLC 7.49 %
RELX PLC 5.93 %
Compass Group PLC 5.21 %
Sage Group (The) PLC 4.33 %
GlaxoSmithKline PLC 4.06 %
Smiths Group PLC 3.92 %
Reckitt Benckiser Group PLC 3.54 %
Smith & Nephew PLC 3.16 %
AstraZeneca PLC 3.14 %
Region %
United Kingdom 84.05 %
United States 11.94 %
Sector %
Consumer Defensive 26.92 %
Consumer Cyclical 25.23 %
Technology 15.50 %
Healthcare 13.79 %
Industrials 12.18 %
Name
T. Bailey Fund Services Limited
Address
NG1 6FJ, Nottingham, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Hugh Yarrow
Joined 09/01/2017

Hugh joined Wise in 2009 and is the lead portfolio manager of Evenlode Income, the UK Equity Income fund he launched in October of the same year. He was appointed as a director of Wise in 2012. Hugh graduated from the University of Edinburgh with a first class degree in philosophy and mathematics in 2002. From 2002 to 2009 he worked as an investment manager on several equity income funds at Rathbone Unit Trust Management. Hugh is a Chartered Fellow of the Chartered Institute for Securities & Investment and holds the Investment Management Certificate.

Ben Peters
Joined 09/01/2017

Ben is a member of the CFA Society of the UK and holds the Investment Management Certificate. He also holds a doctorate from the University of Oxford in the field of physics.

Data provided by Morningstar.

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