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Aviva Inv UK Listed Equity Income Class 2 - Income (GBP)

Sell:137.04p Buy:137.04p Change: 1.11p (0.82%)
Prices as at 24 November 2020
Sell:137.04p
Buy:137.04p
Change: 1.11p (0.82%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 24 November 2020
Sell:137.04p
Buy:137.04p
Change: 1.11p (0.82%)
Prices as at 24 November 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We like Chris Murphy for his no-nonsense approach. He's had a career-long obsession with high-quality, cash-generative businesses. He blends companies that generate a lot of cash now, and those that might make lots of cash in future. This has delivered excellent long-term returns, combining a high and rising income with capital growth. Past performance isn't a guide to the future though.

He's stuck to his approach consistently and we think it's a great way to manage an income fund. We view this as an excellent choice for investment in the UK stock market, and for portfolios focused on income. It's also available with a very low ongoing charge.

Our view on the sector

Equity income funds are popular with investors. Most aim to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested in the fund to boost long-term growth. Different fund managers take different approaches to income investing. Some focus on larger companies that are seen to be more stable and have paid regular dividends for many years. Others invest in higher-risk small and medium-sized companies. These might pay a lower income to start with, but have more growth potential. We think carefully chosen equity income funds can form the cornerstone of almost any portfolio.

Performance Analysis

Over his career Chris Murphy's delivered a higher return than his benchmark, but with some inevitable periods of underperformance along the way.

He performed relatively well compared to many other managers during the financial crisis, as his fund didn't fall as much as the wider market. Some of the fund's best performance has been when the market's fallen. That's because the type of companies he invests in are often better equipped to handle whatever's throw at them. This has provided some stability when stock markets have been turbulent.

More recently performance has been a little lacklustre. The market's been strong for a long time and the fund hasn't normally kept up in rapidly rising environments. Please remember, past performance isn't a guide to the future.

Investment Philosophy

Chris Murphy thinks investing should be simple. He likes companies that make a lot of cash now, and those that might make lots of cash in future, whether that's because they're growing strongly or recovering from a setback. Then he buys the shares for less than he thinks they're worth.

Murphy believes that to perform better than everyone else you have to invest differently from the crowds. That means he'll often invest in unpopular and unloved companies.

Process and Portfolio Construction

Chris Murphy and his co-manager, James Balfour, spend a lot of time thinking about how much cash companies make and how they can grow their cash flow in the long run.

They invest the core of the fund in companies that generate a lot of cash now. These businesses often look dull from the outside, but good cash flow enables them to pay high dividends. They'll also invest in companies that re-invest the cash they make to grow, and those that are on the mend following a tough spell.

This is how they combine a high income now, with the potential for income and capital growth over the long term.

The managers normally invest in between 40 and 75 companies. Lots of these are large companies, many with global operations. That means their success largely depends on the state of the global economy, not just how well the UK does. He also invests in medium-sized and smaller companies, which have the potential for higher growth but are riskier.

question mark Manager Track Record Based on HL Quantitative Research

  • Aviva Investors UK Listed Equity...
  • Aviva Investors UK Listed Equity...
  • FTSE All-Share TR
FROM: TO:


Fund Track Record

24/11/15 to 24/11/16 24/11/16 to 24/11/17 24/11/17 to 24/11/18 24/11/18 to 24/11/19 24/11/19 to 24/11/20
Annual return 6.22% 13.72% -4.14% 10.57% -4.53%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Chris Murphy
Manager start date: 17 April 2009
Manager located in: London

Chris joined the firm ( as Morley Fund Management ) in June 2006. Chris previously worked as a fund manager at Framlington Investment Management, managing first income and then growth portfolios, concentrating on retail funds. Prior to this, he was a UK equity analyst at James Capel and a graduate UK equity analyst at Lehman Bros.Chris holds a BSc (Hons) in Physics from University College, Cardiff and is an associate member of the IIMR.

manager photo
Manager Name: James Balfour
Manager start date: 17 June 2016
Manager located in: Poultry, London

James joined the investment industry and Aviva Investors in 2012. James is responsible for providing ideas to UK funds and is also assistant manager to a number of UK equity mandates. James joined Aviva Investors after completing his Master's in Finance and Investment at Essex University. He began on the graduate programme before moving across to be a permanent member of the UK equity team. James holds a BA (Hons) in Economics from Durham University and has passed all three levels of the CFA Program and will be eligible for the CFA charter upon completion of the required work experience.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account