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Rathbone Income Fund Inclusive - Class R - Accumulation (GBP)

Sell:1,291.63p Buy:1,291.63p Change: 16.46p (1.26%)
Prices as at 24 September 2020
Sell:1,291.63p
Buy:1,291.63p
Change: 16.46p (1.26%)
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 September 2020
Sell:1,291.63p
Buy:1,291.63p
Change: 16.46p (1.26%)
Prices as at 24 September 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 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 »

Carl Stick aims to provide investors with a healthy level of income that grows over time. But he won't just chase the highest yields as he wants to grow the capital value as well, which we like. He invests more in medium-sized and smaller companies than many other income-based funds. This provides more potential for growth, but it adds risk.

We think Stick's a good fund manager with lots of experience behind him. But we have higher conviction in other managers in the UK Equity Income sector, so the fund isn't on the Wealth 50 list of our favourite funds.

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

The fund's beaten the FTSE All Share index over the long-term. A big part of that's down to the manager investing in medium-sized and smaller companies. Our research suggests his selection of individual companies has also added value.

The fund suffered heavily during the financial crisis. The manager held on to loss-making companies and those with lots of debt for too long. It did better than the benchmark between 2010 and 2016, but hasn't done as well over the past couple of years. Past performance isn't a guide to the future.

Investment Philosophy

The manager believes the best companies are those that steadily earn money and have excellent management. He also looks for companies with attractive share prices. He thinks they're less likely to be affected by unexpected events than companies with expensive shares.

Process and Portfolio Construction

Carl Stick considers what's going on in the wider economy when he makes his investment decisions. He also tries to identify the themes that will drive the future growth of sectors and companies. He looks for companies he thinks can grow more than the rate of inflation, and are in sound financial health.

There are normally less than 50 companies in the portfolio. This means each one can make a big difference to performance. The manager sometimes increases the amount of cash held in the fund if he thinks stock markets will fall. He can also invest in overseas companies if he can't find any suitable ones in the UK, or if he wants to reduce the amount invested in the UK.

question mark Manager Track Record Based on HL Quantitative Research

  • Rathbone Income Inc
  • FTSE All-Share TR
FROM: TO:


Fund Track Record

23/09/15 to 23/09/16 23/09/16 to 23/09/17 23/09/17 to 23/09/18 23/09/18 to 23/09/19 23/09/19 to 23/09/20
Annual return 12.15% 6.15% 3.06% 1.40% -17.32%

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.

Fund Management Group Comment

Rathbone Unit Trust Management is a wholly-owned subsidiary of Rathbone Brothers PLC. Rathbone Brothers PLC was established in Liverpool in 1742 by William Rathbone II as a timber and shipbuilding business.

In 1995 and 1997 respectively, Rathbone Brothers acquired stockbrokers Laurence Keen and Neilson Cobbold. The company also acquired two unit trusts from Laurence Keen Unit Trust Management, the success of which led to a rebranding of the operation in 1999 to Rathbone Unit Trust Management Limited.

Information about the fund

Fund manager biography

Manager Name: David Harrison
Manager start date: 1 January 2016
Manager located in: TBC

David works within the investment team as a Global Equity Analyst. He joined Rathbones in June 2014 from private bank, Julius Baer. David has over 14 years investment experience, having previously worked at Hermes, managing European equities. He started his career at Goldman Sachs in equity research. David holds the Investment Management Certificate and a BSc (Hons) in Economics and Politics from the University of Southampton. He is a CFA charter-holder. He is also Assistant Fund Manager on the Fixed Income team.

Manager Name: Elizabeth Davis
Manager start date: 1 January 2016
Manager located in: TBC

Elizabeth is Assistant Fund Manager on the Rathbone Income Fund and co-manages the Rathbone Heritage Fund. She joined Rathbones in January 2005 after graduating from the University of Oxford (Lady Margaret Hall). She holds an MA in Mathematical Sciences. Liz supports fund managers on the income mandates through quantitative stock screening and fundamental research on companies. She also profiles relative and absolute risk across the funds. Prior to joining Rathbone Unit Trust Management, Elizabeth worked on temporary assignments with Accord Holdings Ltd, a media advertising business. She holds the Investment Management Certificate and is a CFA (Chartered Financial Analyst) Charterholder.

manager photo
Manager Name: Carl Stick
Manager start date: 1 January 2000
Manager located in: London

Carl graduated from the University of Southampton in 1991 with a BA Honours degree in English Literature. Having served in several non-investment related jobs, he took up a position as an assistant private client manager with stockbroking firm Neilson Cobbold, Tunbridge Wells in 1996. Rathbones acquired Neilson Cobbold and Carl transferred to London in 1998. In August 1998, after two years as a discretionary investment manager, he became an assistant fund manager working alongside Hugh Priestley. Carl took over the management of the Rathbone Income Fund in January 2000, followed by the management of the Rathbone Smaller Companies Fund (now managed by Marina Bond) in November 2000. In February 2002, he gained full responsibility for the Rathbone Special Situations Fund (now managed by Julian Chillingworth and Marina Bond). In May 2006, Carl became co-manager on the Rathbone High Income Fund (now managed by Julian Chillingworth). Since October 2001, Carl has been a Board Director of Rathbone Unit Trust Management and plays a key role in the development of Rathbone's investment process and business strategy. He is also I.I.M.R-qualified and a Fellow of the Securities Institute. Carl has run the London Marathon in 2004, 2005, 2006, 2007 and 2008 in support of the Multiple Sclerosis Society, having raised over £20,000.

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