WS Canlife UK Equity and Bond Income Fund

About the Fund

The Fund aims to provide an income and the potential for capital growth, over any five-year period, after all costs and charges have been taken. The Fund’s comparator benchmark is the Bloomberg UK Large, Mid & Small Cap Total Return Index.

Essential features of the Fund

WS Canlife UK Equity and Bond Income Fund 

    • To invest directly and/or indirectly at least 80% of the assets by value in the shares of UK companies (companies incorporated or domiciled in the UK) and UK debt securities such as government and public securities, corporate bonds and convertible bonds. As part of the equities exposure the Sub-fund may also invest in Real Estate Investment Trusts (REITs)
  • Investment in UK company shares will be in the range of 60% to 80% and investment in UK debt securities will be in the range of 20% to 40% of the assets by value. Investment outside of these ranges may be made when, in the opinion of the Fund Manager, the market conditions or market outlook are such that this would be to the advantage of the Sub-fund. During such periods, the Sub-fund may invest between 40% and 80% in UK company shares and 20% and 60% in UK debt securities
  • The Fund may also invest up to 20% in money market instruments (which are short term loans that pay interest) and cash
  • It can invest across different industry sectors and market capitalisations without limitation
  • Investments in collective investment schemes is limited to 10% of the Fund’s assets
  • The Fund may use derivatives for the purpose of efficient portfolio management
  • Up to 25% of the Fund’s holdings by value may be used to generate additional income from stock lending

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 and the Fund Manager will consider investment in shares which in their opinion have a robust business model, a strong balance sheet and the ability to provide a stable and/or growing level of distribution
  • Fundamental analysis – specific holdings are determined through research undertaken by Canada Life Asset Management’s UK equities team.  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 - The portfolio typically holds a diversified range of large- and mid-cap UK equities that offer a variety of characteristics, such as strong balance sheets and robust cash flow, or the potential to benefit from recovery in a company’s business. The stock selection process takes into account multiple factors, including each company’s competitive position within its industry, the quality of its brand and underlying assets, current market and economic trends, and specific drivers behind earnings and dividend growth. The Manager also conducts thorough analysis of valuations, including reviews of earnings forecasts and changes to companies’ strategies and management teams that may affect their prospects
  • For fixed income - the Fund 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

Reasons to recommend

Provides 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 Fund 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.

This page is for information only. It does not constitute a direct offer to anyone, or a solicitation by anyone, to subscribe for shares or buy units in fund(s). Subscription for shares and buying units in the fund must only be made on the basis of the latest Prospectus and the Key Investor Information Document (KIID) available in the Literature section

Fund Manager

Craig Rippe

Head of Multi-Asset

Learn more
Sales contact

Adam Creed

Sales Director – Discretionary and Group

020 7415 6488

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