To provide a high and stable income, with the prospect of capital and income growth over the long term.This Fund is made up of around 70% UK equities and 30% UK investment grade bonds, A and AA rated.
The UK stock market ended the quarter lower, along with global markets. The volatile period was dominated by worries about rising inflation, risks of weaker growth, volatile commodity prices, falling house prices and the ongoing financial market turmoil.Within the equity portion of the fund, an overweight in nonlife insurance and an overweight and stock selection in pharmaceuticals & biotechnology positively contributed, while an underweight in food & drug retailers and an overweight in mining detracted.At the stock level, underweights in mining companies Rio Tinto and Eurasian Natural Resources benefited relative returns, while overweights in Kazakhmys, BHP Billiton, Antofagasta and Vedanta Resources detracted, as falling commodity prices and fears over slowing global economic growth weighed on the sector.An underweight in HBOS was beneficial in relative terms. The mortgage lender fell on concerns over its exposure to the weakening UK housing market, and Lloyds TSB agreed to buy it in a government-engineered deal. An overweight in AstraZeneca also benefited performance after the drugmaker received broker upgrades on its short-term earnings and pipeline momentum.
UK equities are at historically attractive levels. However, with economic growth faltering, ongoing financial sector difficulties, high borrowing costs, falling house prices and reduced consumption, the outlook for corporate profits appears weak.Markets are unlikely to normalise until borrowing rates normalise, banks recapitalise themselves, property prices stabilise and private sector credit demand begins to recover. Furthermore, earnings momentum needs to improve.
Latest Price |
167.10p |
IMA Sector |
UK Equity & Bond Income |
Currency |
British Pound |
Launch Date |
01/10/1994 |
Fund Size |
n/a |
Fund Manager |
Jamie Streeter / James Illsley / Talib Sheikh |
ISIN |
GB0030882301 |
Dividend |
0.00p |