MI Downing Monthly Income Fund
Our monthly income Fund targets a premium yield to the UK equity income sector, together with long-term capital growth.
- Top quartile yield: the fund is committed to providing a market and sector beating yield.
- High conviction portfolio: 30 – 40 holdings allow best ideas to drive performance.
- Risk-adjusted portfolio construction: with our bottom-up approach, we believe we have a full understanding of our investments. Strong balance sheets, good cash generation and efficient operations reduce risk.
- Value-led: we aim to buy businesses at attractive valuations, to improve returns and protect against downside risk.
- Multi-cap approach: the fund applies Downing’s small-cap expertise across a range of UK market capitalisations.
- Distributions: income is paid monthly.
Why we’re different
The UK equity income sector has attracted such a substantial volume of assets over the last few years that 60% of assets within the sector are invested in the same 50 companies1.
Our fund has a significantly lower exposure to these businesses and is designed to offer you an alternative source of income. We invest across a range of UK companies with different market capitalisations, allowing us to find businesses that we believe can provide an attractive yield and long-term capital growth.
1Source: FE Analytics, based on holding information as at 31/7/15 for a sample of 40% of the sector by asset under management
Our typical investment process
Set out below is our typical investment process for the Downing Monthly Income Fund:
Meet the Managers