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Why invest in UK Multi Cap Income? 

Diversification built In
With 55% of dividends coming from 10 companies on the FSTE 1001, we believe that the majority of income funds
demonstrate high levels of overlap and correlation due to their bias towards mega cap high-yielding names . Our small and mid-cap bias offers diversification of the sources of the Fund’s income into smaller less well-known companies that have the scope to produce meaningful dividend growth over the life of our investment.

 

Growth drivers
We invest in sectors we believe drive the UK economy, in particular: consumer markets; technology, media and telecoms; business services; and healthcare and education. These four sectors account for c.75%of the UK’s GDP and are crucial for the future of the UK’s growth potential.

 

Resilience and strength
We focus on profitable, cash generative businesses with the potential to grow profits, cash flows and dividends over the longer term. This includes avoiding those prone to the effects of cyclical risks and large external factors outside the control of the management teams. We believe this adds resilience to the earnings and dividends of our investee companies and results in a relatively defensive growth portfolio with strong dividend cover.

 

Under researched
Whilst the large cap stocks in the FTSE 100 are well covered by research analysts, those further down the scale are comparatively under-researched and offer income and growth for those who
know where to look. We have a deliberate bias to target over 70% in small and mid-cap stocks, with the remainder of the portfolio held in large cap and cash which enables us to profit from these harder to find opportunities.

 

Mitigating risk
By being close to the companies and their management teams and building high conviction in sectors where Livingbridge has knowledge and expertise, we seek to minimise stock specific risk. We also aim to avoid benchmark driven behaviour and focus on quality companies we genuinely believe in.

By focusing on the sectors and businesses that meet our in-depth fundamental criteria, we can help screen out loss-making or highly-leveraged businesses that are typically higher risk. This approach helps to provide substantial mitigation to some of the inherent risks of investing in smaller companies.

 

 

1. Source: AJ Bell, Dividend Dashboard. Forecast percentage contribution to FTSE 100 cash dividend payments in 2018, as at 11 December 2017. 
2. Source: Office of National Statistics Economy GDP analysis as at 31st December 2017 https://www.ons.gov.uk/economy/grossdomesticproductgdp
 

Fund objective and key stats

The fund aims to deliver a return of income with a potential for capital growth. The fund will be invested primarily in small and mid-sized companies and the fund will also hold larger capitalised companies. Investment will predominantly be in the shares of UK listed companies.

Investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies.

Ken BG      

Fund manager: Ken Wotton            Co-manager: Brendan Gulston

Launch date: 30 June 2017

Fund Sector: IA UK Equity Income

Number of holdings: 40-70

Fund Type: OEIC

Base Currency: GBP

Pricing: 12.00 Noon GMT

ISIN: GB00BYXVGS75

Annual Management Charge: 0.75%

Minimum Investment: £10,000

 

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Platform availability

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How to invest

Shares may be bought directly from Link Fund Solutions Limited (“Link Fund Solutions”) or through a professional adviser or other intermediary, application forms may be obtained from Link Fund Solutions.

 

Website: www.linkfundsolutions.co.uk

Email: investorservices@linkgroup.co.uk

Call: 0845 922 0044

Important Information


Past performance is not a reliable indicator of future performance. The value of the Fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested.

Fund investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies. You should note that your tax treatment in relation to any investments will depend on your individual circumstances and may be subject to change in the future. Governments may change the tax rules which affect you or the funds in which you have invested.

The LF Livingbridge UK Multi Cap Income Fund is an undertaking for collective investment in transferable securities (UCITS). This is an open-ended investment company (OEIC), that meets the criteria of the UCITS IV Directive allowing the fund to be marketed to investors throughout the EEA. 

Why are we different?

Fund Manager, Ken Wotton, and Co-Manager. Brendan Gulston, discuss the fundamentals-based approach of the LF Livingbridge UK Multi Cap Income Fund and how the Fund aims to leverage Livingbrige’s smaller company focus and private equity heritage to potentially generate a high conviction portfolio that delivers risk adjusted returns and low correlation with its peers.