Unicorn UK Ethical Income Fund Class B Income

UK Equity Income

Rated Fund 2019-20. Good bet for income from ethical sources

Unicorn UK Ethical Income was our wildcard in the UK Equity Income asset group for 2019 – and it has had a great year. A sector-leading performance and growing following have increased its assets from £18 million to £31 million over the past year. It is a constituent of interactive investor’s ACE 30 ethical fund recommendations list.

Managers Fraser Mackersie and Simon Moon of Unicorn Asset Management aim to achieve an historic yield in excess of 110% of the FTSE All-Share index over a three-year period. They are comfortably exceeding this, with a yield of 4.5% versus 4.2% for the index. Mackersie runs another Rated Fund in the form of Unicorn UK Growth, which has been moved into our UK Smaller Companies asset group for 2020 on account of its bias to companies further down the market capitalisation scale.

Unicorn UK Ethical Income is an ethically screened version of the Unicorn UK Income fund, both of which have the same bias to small and medium-sized companies. The ethical fund's 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 with environmental, social or governance concerns. The correlation of returns between the two funds has been high, but deviated significantly during 2018 due to the collapse of alcohol retailer and supplier Conviviality. Its area of operation excluded it from the ethical version of the fund.

At the end of 2019, the fund had 35 holdings. One was a new position in construction and property development group Henry Boot, initiated in November when sentiment towards domestically focused stocks, particularly in the construction sector, was severely depressed.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Unicorn UK Ethical Income 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
-0.23
3 Year Alpha
-1.92
Yield
5.4 %
Benchmark
FTSE AllSh Ex Investment Trust TR GBP
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 %
Phoenix Group Holdings PLC 5.56 %
Sabre Insurance Group PLC 4.96 %
Telecom Plus PLC 4.61 %
Primary Health Properties PLC 3.76 %
Secure Trust Bank PLC 3.43 %
LondonMetric Property PLC 3.21 %
Hill & Smith Holdings PLC 2.97 %
Numis Corp PLC 2.94 %
XPS Pensions Group PLC 2.86 %
Wincanton PLC 2.76 %
Region %
United Kingdom 96.70 %
Sector %
Financial Services 37.97 %
Industrials 26.57 %
Real Estate 9.01 %
Utilities 5.85 %
Technology 5.69 %
Basic materials 5.05 %
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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