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LF ASI Income Focus Class Z - Accumulation (GBP)

Sell:66.64p Buy:66.64p Change: 1.04p (1.54%)
Prices as at 30 November 2021
Change: 1.04p (1.54%)
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 30 November 2021
Change: 1.04p (1.54%)
Prices as at 30 November 2021
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 does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This fund is managed by experienced UK equity income investors Thomas Moore and Charles Luke. They took over the fund's management in January 2020 and have since made changes to reflect their best ideas and where they see the greatest income opportunities in the market.

The managers have over four decades of UK equity income experience and can draw on ASI's 16 strong UK equity team for analysis, challenge and idea generation. The aim is to provide a high level of income together with capital growth by investing in quality UK stocks. Please note the fund's charges are taken from capital. This increases the yield, but reduces the potential for capital growth.

Our view on the sector

Funds in this sector do what they say on the tin - they aim to pay a high income to investors. There's more than one way to achieve this though. Each fund uses a different approach and invests in different areas. Some focus on bonds. They tend to pay a fixed rate of income, but the amount varies from bond to bond. Government bonds are perceived to be lower risk and pay a lower income to reflect this. Corporate bonds offer higher yields because of the extra risk taken when lending to companies. Bonds can be less volatile than company shares, but offer less potential to grow your income and initial investment. Other funds focus on dividend-paying shares and offer more potential for long-term growth. There are also funds with the flexibility to invest in all kinds of investments. In addition to shares and bonds, they might also invest in currencies, property or commodities.

Performance Analysis

Luke and Moore have managed the fund for a short period but have track records going back further with previous funds. Over these periods, both managers have performed roughly in line with the UK stock market but handle market environments differently. Moore has performed better in rising markets but fallen more in poorer markets, whereas Luke has done the opposite.

On this fund, the managers use a blend of their two styles, incorporating both value and growth. We therefore expect performance to differ from their other funds.

The fund is currently weighted more towards value-style stocks and this bias hurt performance in 2020. This is typical of UK equity income funds, which tend to have more in income-paying value companies. Many of the companies that performed best through 2020 were those that paid no or a lower yield.

In 2021, there has been some signs of recovery as value-focused funds have so far performed better, though this is over a short time. Please remember, past performance isn't a guide to the future.

Investment Philosophy

Luke and Moore run the portfolio with a total return philosophy, meaning they aim to grow both the capital and income of the companies they invest in. They favour ones they feel are high in quality, have strong cash flows and can be bought at a low price, and avoid those with too much debt.

Process and Portfolio Construction

The managers invest in larger companies that they believe can pay a sustainable income and more economically sensitive names - this combination aims to deliver both income and capital growth, though neither are guaranteed.

They predominately focus on UK domestic stocks that aim to provide resilient dividends but also have the flexibility to invest overseas. They run a concentrated portfolio, typically fewer than 40 companies, so each can have a significant impact on performance, both positively and negatively, which increases risk.

The managers also have the flexibility to invest in derivatives, which if used increases risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

30/11/16 to 30/11/17 30/11/17 to 30/11/18 30/11/18 to 30/11/19 30/11/19 to 30/11/20 30/11/20 to 30/11/21
Annual return n/a -13.70% -16.68% -19.47% 14.21%

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 Name: Aberdeen Standard Investments
Manager start date: 31 December 2019
Manager located in: TBC


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