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LF Canlife UK Equity and Bond Income Fund

About the Fund

The LF Canlife UK Equity and Bond Income Fund aims to generate an attractive level of income with moderate long-term capital growth by investing mainly in the shares of UK companies, as well as UK corporate debt securities

Essential features of the Fund

LF Canlife UK Equity and Bond Income Fund 

  • The Fund typically holds between 70% - 80% in equities
  • The balance is then invested across fixed interest securities, including corporate bonds, gilts, convertible stocks and preference shares
  • The Fund invests mainly in the equity of UK listed companies and can invest in all sectors of the market
  • There is no specific target in relation to market sectors

For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectus.

 

How the Fund is managed

The Fund uses primarily a bottom-up stock selection process, but is flexible, pragmatic and mindful of prevailing macroeconomic and market conditions, for example; interest rates, commodity prices and inflation

  • For equities - the Fund uses primarily a bottom-up stock selection process, but is flexible, pragmatic and mindful of prevailing macroeconomic and market conditions, for example; interest rates, commodity prices and inflation
  • Fundamental analysis – specific holdings are determined through research undertaken by Canada Life Asset Management’s UK equities team, with each manager making individual stock selection decisions. Input is also sought from Canada Life Asset Management’s global equity and fixed income teams on global macro and market trends
  • Sector selection - bottom up stock selection is a major factor in determining the shape of the overall Fund portfolio. However, sector allocations are also important in order to ensure balance and diversification. Typically, macro and market views are considered in order to balance the portfolio across factors such as growth, cyclicality and defensiveness. Additionally, the desired exposure to trends such as in bond yields and commodity prices are key considerations. This approach to portfolio construction allows us to deliver a diversified source of return from both a capital and income perspective
  • Stock selection - typically comprised of liquid large and mid-cap UK equities. The stock selection process itself takes into account several factors. These include the company’s market position, quality of its brand and underlying assets, how it fits in with current market and economic trends, and the specific drivers behind earnings and dividend growth. The managers will also conduct a thorough analysis of a company’s valuation, being sure to understand its earnings forecasts and any changes to a company’s strategy or management team
  • For fixed income - the manager draws on the expertise of Canada Life Asset Management’s credit analysis team. A conservative approach is taken, seeking out investments that have good credit quality and an attractive yield, preferring to hold for the long-term to keep portfolio turnover to a minimum
Craig Rippe

Craig Rippe

Head of Multi-Asset

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Reasons to recommend

Attractive Income

Due to the impact of compounding, history shows that reinvested dividends account for the bulk of equity market returns. The Fund’s blend of company shares and fixed income securities allow the manager to seek out the best sources of yield

Long term growth

In addition to providing income, the Fund also aims to generate moderate long-term capital growth by investing in quality companies that have consistent earnings, while retaining a focus on risk

High-quality companies

The Fund invests in some of the world’s most familiar companies with strong market positions, which tend to have steady earnings growth and are therefore consistent dividend-payers

The value of investments may fall as well as rise and investors may not get back the amount invested.

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