Factsheet: Threadneedle Mthly Etr Inc Z Inc GBP

Mixed Asset 61-100% Equity

Rated Fund 2013-2018. Combines regular income with a focus on total return

A great attraction for income-seekers is the fact that, as its name suggests, this fund pays income monthly. It has a robust yield of 3.7 per cent and has notched up some of the best total returns among its peers. Its portfolio is typically around 70 to 80 per cent invested in UK equities, with sterling-denominated bonds making up the remainder. The fund typically holds 40 to 60 equities and more than 100 bonds. At the end of 2017, it had 240 holdings in total.

The fund markets itself as a one-stop shop — providing investors with the diversification benefits of both UK equities and UK bonds in a single portfolio, with further value added through tactical re-balancing between the two asset classes. Its ongoing charges are 0.73 per cent.The fund is run by Richard Colwell, who is responsible for the equity portfolio, and Alasdair Ross, who looks after the fixed interest side. They aim to provide smooth, sustainable income growth, while also offering the prospect of capital growth. The fund's first 11 monthly income payments are of equal size, with a final, typically larger, distribution at the end of the year.As the fund is managed for total return, not just income, the managers aim to combine higher-yielding investments with capital growth opportunities. They take general economic trends into account when looking for long-term investment themes. However, company research is the key part of their investment process. The managers particularly look for companies trading on attractive valuations with robust business and financial models, and solid management teams.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Threadneedle Mthly Etr Inc Z Inc GBP
Manager
Threadneedle Investment Services Ltd
Type
Open Ended Investment Company
ISIN
GB00B8BZ3226
Sector
UK Equity And Bond Income
Launched
15/10/2012
OCF
0.73 %
Risk Rating
3
3 Year Sharpe
0.78
Yield
3.8 %
Benchmark
Not Benchmarked
The fund seeks to achieve a high level of income with prospects of capital growth. Income will be paid monthly. The ACD’s investment policy is to invest the assets of the Fund primarily in Sterling denominated fixed interest securities and UK equities.
Holding %
AstraZeneca PLC 5.31 %
GlaxoSmithKline PLC 3.95 %
Electrocomponents PLC 3.54 %
Imperial Brands PLC 3.32 %
Royal Dutch Shell PLC B 3.00 %
Morrison (Wm) Supermarkets PLC 2.99 %
Unilever PLC 2.71 %
3i Ord 2.60 %
RSA Insurance Group PLC 2.51 %
Rentokil Initial PLC 2.36 %
Region %
United Kingdom 96.64 %
Sector %
Industrials 24.10 %
Consumer Cyclical 17.63 %
Consumer Defensive 15.55 %
Financial Services 15.24 %
Healthcare 12.31 %
Name
Threadneedle Investment Services Ltd
Address
EC4N 6AG, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Richard Colwell
Joined 03/01/2010

Richard Colwell is a portfolio manager and Head of UK Equities at Columbia Threadneedle. He manages the Threadneedle UK Growth & Income Fund, Threadneedle UK Equity Income Fund and the Threadneedle UK Equity Alpha Income Fund. He also co-manages the Threadneedle Monthly Extra Income Fund and has research responsibility across all sectors. Before joining the company, Richard ran high alpha UK equity portfolios at Aviva Investors. He has also held portfolio management roles at Credit Suisse and Schroders and worked at the Bank of England. Richard has a degree in Banking, Insurance & Finance from the University of Bangor. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of the UK as well as the Chartered Institute of Bankers.

Alasdair Ross
Joined 04/01/2009

Alasdair Ross is Head of Investment Grade Credit, EMEA, with responsibility for our UK and European investment grade corporate credit teams based in London. Alasdair is lead portfolio manager across various global, euro and UK corporate credit portfolios. Alasdair’s investment background is as a fundamental, bottom-up, investment grade credit analyst. Between joining Threadneedle in 2003 and becoming a portfolio manager in 2007, he had responsibility for covering the TMT, utility and energy sectors, as well as the sterling whole business securitisation sector. Prior to joining the company, Alasdair worked at BP plc in a rotation of commercial roles. Alasdair has a first class honours degree in Politics, Philosophy and Economics from the University of Oxford.He also holds the Chartered Financial Analyst designation.

Data provided by Morningstar.

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