Unicorn UK Ethical Incomev Fund Class B Income
UK Equity Income
New for 2019. Best bet for income from ethical sources
Unicorn UK Ethical Income has been added as our wildcard in the UK Equity Income asset group for 2019.
The fund is managed by Fraser Mackersie, who runs another Rated Fund in the form of Unicorn UK Growth, and co-manager Simon Moon.
Few income funds have an ethical remit. Janus Henderson UK Responsible Income and BMO Responsible UK Income, this fund’s closest competitors, have both performed poorly over the past three years.
The Unicorn fund has held up well in down periods for the wider ethical funds sector. Following its poor start at launch in April 2016, it has caught up with its two closest rivals and offers hope of a better future, superior returns and growth in its asset base of just £18 million.
Unicorn UK Ethical Income aims to achieve a historic yield in excess of 110% of the FTSE All-Share index over a three-year period. It is very close to this target at present, having yielded 4.7%.
Its 36 holdings are predominantly small and medium-sized companies. The fund is an ethically screened version of the Unicorn UK Income fund. Its universe of stocks is sourced directly from its sister fund. An external service is then used to screen out companies that generate revenues from prohibited sectors or those that raise environmental, social or governance concerns.
The correlation of returns between the two funds has generally been high, but it deviated significantly during 2018 because of the sudden downfall and eventual collapse of alcoholic drinks retailer and supplier Conviviality in April 2018. The company’s area of operation excluded it from the ethical version of the fund.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Cineworld Group PLC||5.38 %|
|Phoenix Group Holdings PLC||4.49 %|
|Telecom Plus PLC||4.07 %|
|James Halstead PLC||3.69 %|
|FDM Group (Holdings) PLC||3.68 %|
|Mucklow (A & J) Group PLC||3.68 %|
|Secure Trust Bank PLC||3.68 %|
|Primary Health Properties PLC||3.36 %|
|LondonMetric Property PLC||3.27 %|
|Polar Capital Holdings PLC||3.23 %|
|United Kingdom||97.02 %|
|Financial Services||31.39 %|
|Consumer Cyclical||14.34 %|
|Basic materials||13.56 %|
|Real Estate||10.29 %|
Data provided by Morningstar.
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