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
Name
Unicorn UK Ethical Incomev Fund Class B Income
Manager
Unicorn Asset Management Ltd
Type
Open Ended Investment Company
ISIN
GB00BYP2Y515
Sector
UK Equity Income
Launched
01/04/2016
OCF
0.81 %
Risk Rating
4
3 Year Sharpe
1.08
3 Year Alpha
5.37
Yield
3.9 %
Benchmark
N/A
The Unicorn UK Ethical Income Fund aims to achieve an historic yield in excess of 110% of the FTSE All Share yield, over a 3 year period, by investing primarily in UK companies which meet the ACD’s ethical guidelines. For this purpose, UK companies are defined as those which are incorporated or domiciled in the UK, or have a significant part of their operations in the UK.. Selection of such ethical equities will be undertaken on the basis of thorough company analysis, with ethical and socially responsible criteria reviewed at the point of investment and quarterly thereafter.
Holding %
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 %
Region %
United Kingdom 97.02 %
Sector %
Financial Services 31.39 %
Industrials 16.52 %
Consumer Cyclical 14.34 %
Basic materials 13.56 %
Real Estate 10.29 %
Technology 9.41 %
Name
Unicorn Asset Management Ltd
Address
EC1M 6AU, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Data provided by Morningstar.

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