Type: Unit trust
Aim: Income and growth by investing in UK equities and convertible shares
Minimum investment: Lump sum £1,000, monthly £50
Investment split: Financials 22.9%, industrials 21.5%, consumer services 8.6%, consumer goods 8.5%, oil & gas 7.8%, healthcare 7.4%, telecommunication services 5.8%, utilities 5.5%, basic Materials 3.8%, cash 4.5%
Isa link: Yes
Pep transfers: Yes
Charges: Initial 5.25%, annual 1.5%
Commission: Initial 3%, renewal 0.5%
Tel: 0845 766 0184
Axa Framlington has reopened George Luckraft’s equity income fund to new business for the first time since it was soft closed in 2005.
Discussing the attractive features of this fund Justin Modray says: “The fund benefits from having George Luckraft, an experienced and well regarded manager, at the helm. In contrast to many of his peers Luckraft adopts a barbell approach to investing, meaning he combines high income stocks with growth stocks to achieve a good overall blend of income and growth potential.”
According to Modray, this approach tends to lead to a higher smaller companies exposure than typical equity income and makes the fund a good portfolio diversifier alongside more conventional equity income funds.
Turning to the less appealing features Modray says: “There is an obvious likelihood that the fund could close again in the not too distant future. While this is a sensible move intended to protect performance prospects it does make life inconvenient for advisers wishing to consistently use the fund longer term.”
In Modray’s view obvious competitors are Standard Life UK Equity High Income, Jupiter Income, Invesco Perpetual High Income and Artemis Income. “While the management styles vary, these funds all sit on the same shelf in the eyes of the marketplace,” he says.
Modray concludes: “I would guess the fund has been re-opened to provide Luckraft with the necessary liquidity to re-position his fund. If this is the case it’s debateable how long it will remain open.”
Suitability to market Good
Investment strategy Good
Adviser remuneration Average