Data is at market close and rounded to 2 decimal places.
- Fund overview
- Investment approach
- Risks
The LF Miton UK Multi Cap Income Fund aims to provide attractive levels of income coupled with capital growth over the long term. The fund is able to invest in small, medium and large-sized companies whose shares are traded on the London Stock Exchange, and will make selections on the basis that they have scope to grow their dividends at a faster rate over the long-term when compared to other companies.
Key points about the LF Miton UK Multi Cap Income Fund:
- The emphasis on opportunities to provide 'good and growing' income.
- A way to diversify the delivery of income and growth alongside existing income and growth funds.
- The flexibility to invest in UK companies of all sizes.
- The fund is not constructed or managed against a specific stock exchange index or benchmark.
- Quarterly income payments.
- Fees and costs are charged against capital so all income can be paid to investors.
*The historic yield reflects distributions declared over the past twelve months as a percentage of the mid-market price, as at 31 August 2020. This yield should not be seen as a future forecast. It does not include any preliminary charge and investors may be subject to tax on their distributions.
The Fund invests primarily in quoted or traded UK companies with a wide range of market capitalisations, but a long-term bias toward small and mid-cap equities. The Fund may also invest in large cap companies, including FTSE 100 Index constituents, where it is believed that this may increase shareholder value.
The stock selection process uses a ‘traffic-light’ process to identify companies that are able to grow their dividends on a sustainable basis:
- Are there prospects for rising turnover?
- Can margins be sustained?
- Does the management team make decisions we feel will build real intrinsic value?
- How much financial flexibility is there in the balance sheet?
- Are there low expectations in the share price?
- The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.
- Fees will be deducted from capital which will increase the amount of income available for distribution; however this will erode capital and may constrain capital growth.
- Investment in the securities of smaller and/or medium sized companies can involve greater risk than may be associated with investment in larger, more established companies. The market for securities in smaller companies may be less liquid than securities in larger companies. This can mean that the Investment Manager may not always be able to buy and sell securities in smaller and/or medium size companies.
- In certain market conditions companies may reduce or even suspend paying dividends until conditions improve. This will impact the level of income distributed by the Fund.
- The Fund does not use derivatives extensively, although it may use them in an attempt to reduce risk, reduce costs and to generate additional income. Investing in derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions. Derivatives may expose the Fund to credit risks of counterparties, who may not meet payment obligations. The use of derivatives may result in the fund being leveraged (where economic exposure and thus the potential for loss by the fund exceeds the amount it has invested) and in these market conditions the effect of leverage will magnify losses.
- This fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.
Objective and investment policy
To provide income, together with income growth and some capital growth over the long term. The fund will invest at least 70% in UK quoted companies, with a long-term bias towards smaller and medium sized companies. The fund may also invest in large companies, other funds, cash and government and corporate debt securities.
Fund facts
| Fund size | £871.9m |
| Historic net yield* | 3.90% |
| Fund launch date | 14 October 2011 |
| IA sector | UK Equity Income |
| Fund type | OEIC |
| Base currency | GBP |
| Valuation point | 12:00 midday |
Accounting dates | Final - 31 May Interim - 30 November |