WS Canlife UK Equity 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 Income Fund 

    • The Fund invests at least 80% of its assets in the shares of companies which are incorporated or domiciled in the United Kingdom, including real estate investment trusts (REITs)
  • It can invest across different industry sectors and market capitalisations without limitation
  • It may also invest up to 20% of the assets by value in debt securities (such as corporate bonds, government and public securities), money market instruments, deposits and cash
  • 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
  • Fundamental analysis – specific holdings are determined through research that is undertaken by the Canada Life Asset Management’s UK equities team.  The team also seeks input from the wider Canada Life Asset Management’s equity and fixed income teams on matters of 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 an income and capital 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
  • Given the income seeking nature of the Sub-fund, the portfolio may be skewed towards value companies paying sustainable dividends but will also incorporate a range of styles and themes

Reasons to recommend

Provides Income

Due to the impact of compounding, history shows that reinvested dividends account for the bulk of equity market returns

Active management targeting consistent long-term outperformance

Our Fund Managers believe that making active portfolio management decisions is the best way to deliver performance over the long-term. Investments are generally made with a medium to long-term investment horizon in mind but holdings are adjusted actively according to market conditions

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

Due to the underlying assets held, the price of the fund is classed as having above average to high volatility.

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 Managers

Stuart Taylor

Senior Fund Manager, UK Equities

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Rino Shala

Fund Manager, Equities

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Sales contact

Adam Creed

Sales Director – Discretionary and Group

020 7415 6488

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