Rathbone Income Fund
Definition of product
- Around 40-50 of mainly UK shares
- Value investment process
- Not beholden to a benchmark
- The fund has a spread of various company sizes and types
- Half-yearly distribution of income
Fund objective
The objective of the fund is to achieve above average and maintainable income but without neglecting capital security and growth. The manager intends to achieve the objective primarily through the purchase of ordinary shares with an above average yield. There is no restriction on the economic sectors or geographic areas in which the fund may invest; however, investments will be predominantly in the ordinary shares of UK companies.
Investment style
The fund invests in companies which have a strong competitive position, first class management, scope for cost savings and cash generation, and are conscious of shareholders’ income requirements. The manager avoids investments with no prospect of capital growth and closely monitors actual dividends received versus income projections. The manager aims to invest in businesses that generate strong earnings. By so doing, we seek to provide a rising trend of income payouts whilst gaining outperformance from companies which benefit from rising share prices.
Why invest?
- Record of rising total income payouts in all but one of the past 10 years
- Yield is higher than that of the FTSE All-Share Index (we aim for 20% higher)
Available for lump sum investment or regular savings into an ISA or as an unwrapped unit trust lump sum or savings plan investment. Charges are 5.5% initial charge and 1.5% per annum annual management charge.
"Investors in our funds will be treated as ‘retail clients’ for the purpose of dealing in units either when buying units from us or selling them back to us. You will enjoy all the protections provided to retail clients by the regulations."
The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance should not be seen as an indication of future performance. The Manager’s annual fee is taken from capital.