UK Equity Income
When you’re seeking income from UK-based equities, a handful of familiar names might spring to mind. The Aviva Investors UK Equity Income Fund should be one of them.
Fund Manager Chris Murphy attributes the performance of this fund by "ignoring the market"
"I think it’s been focusing on stock selection, whether that’s through companies like Melrose in engineering, through Inmarsat in telecoms or William Hill, and it’s been focusing on the cash flows and being very disciplined about their valuation." - Chris Murphy, Fund Manager of the Aviva Investors UK Equity & UK Equity Income Funds.
The Fund provides exposure to a diverse range of companies which we believe have sustainable above-market yields and attractive capital return potential.
• 3 consecutive years in the Whitelist
The Fund has been one of seven funds that have been chosen to be in the Principal Income Study Whitelist of UK Equity Income funds since 2011. Only 14 funds make it to this list each year.
• Fund Manager
Chris Murphy has been working in the investment industry for over 25 years.
• Highly rated
The Fund has a Gold rating from Standard & Poor’s* and a Bronze rating from OBSR*
• Longer-term pragmatic view
We aim to take a longer-term pragmatic view to help separate market perception from reality which often means taking a contrarian stance.
Past performance is not a guide to the future.
What is the ‘pragmatic contrarian’ approach?
This is an approach adopted by the Fund Manager Chris Murphy and his team of 9 highly experienced investment professionals who share a common philosophy and integrated research process. To Chris, pragmatic means he is disciplined in the way he thinks and contrarian in the sense that he is not interested in largely what the market is doing, only in companies.
This means that we give more weight than some to our research-based convictions, rather than short-term market perceptions. An important distinction which helps us look beyond the big yield payers and build a focused, disciplined, diversified portfolio.
“Consistency of overall team beliefs, long term investing in businesses and not speculating on short term trades, whether it is ”risk-on risk-off” is what has worked well for us. A focus on cashflow, good business models and buying businesses you support and want to own at the right valuations is what has kept us ploughing through these difficult markets” - Chris Murphy, Fund Manager of the Aviva Investors UK Equity Income Fund since April 2009.
To find out more about this approach, visit the investment process page
Watch Chris discuss his approach, current portfolio construction and outlook for the future.
Get in touch
Sales & Fund Information
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Except where stated as otherwise, the source of all information is Aviva Investors as at 28 February 2013. *Source: Standard & Poor’s / Morningstar OBSR as at 28 February 2013. The fund is in the White list as per the Principal Income Study 2013 as at 31 January 2013.
Any opinions expressed are based on the views of Aviva investors and they should not be relied upon as indicating any guarantee of return from an investment managed by Aviva Investors. No part of this document is intended to constitute advice or recommendations of any nature.
The value of an investment and any income from it can go down as well as up and is not guaranteed and investors may not get back their original investment. The investment objective of the fund is to prioritise the generation of income over capital growth, all or part of the Authorised Corporate Directors (ACDs) fee may be charged against capital instead of income. It is also possible to charge other costs against capital instead of income. This may limit capital growth.