Due to the impact of compounding, history shows that reinvested dividends account for the bulk of equity market returns. The fund aims to provide an income in excess of its benchmark by investing in companies that have steady earnings growth.
In addition to providing income, the fund also aims to generate 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 companies with, strong market positions, and which tend to have steady earnings growth and therefore are consistent dividend-payers.
Lead manager Craig Rippe has more than 15 years of industry experience and has been a fund manager at Canada Life Investments since 2004.
Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Performance figures are on a bid to bid with net income reinvested basis. Valuations are based on the previous day's prices.
The management team favours quality companies with strong balance sheets that should remain sound despite a weak economy. Therefore, they avoid companies that require a strong economic backdrop to prosper (and therefore justify their valuations), favouring instead businesses with steady earnings growth that are consistent performers throughout the cycle.
The managers believe that high fund turnover, incurring stamp duty, commissions and fees, destroys value. Turnover is kept low, which is consistent with the team’s preference for long-term investing, rather than taking short-term speculative positions.
When constructing the fund, the managers take a sector allocation view that depends on the current phase of the economic cycle. This determines their stance on companies that are defensive, cyclical, non-cyclical and financial. The managers then select companies based on several factors, such as strong balance sheets, profit levels, market share and quality of management, aiming to ensure that the fund is suitably diversified across sectors. At any given time the fund may diversify significantly from its benchmark to reflect the managers’ opinions and conviction levels.
Head of UK Equities
Craig joined Canada Life Investments in March 2004 and was appointed Head of UK Equities in March 2010.
He previously managed income funds at Govett Investment Management Limited and prior to that worked at Deloitte Touche. Craig has a BSc in Mathematics from Warwick University. He is a Chartered Accountant and a CFA charterholder.
Senior Fund Manager, UK Equities
Eugene joined Canada Life Investments in August 2010, having previously worked for Depfa Bank Plc in its Balance Sheet Management team in Dublin.
Eugene holds a BSc in Financial Mathematics and Economics from National University of Ireland, Galway and an MSc in Financial Mathematics from King's College London. He is a CFA charterholder.
Interested in this fund and would like to find out more?
Contact our team who will be happy to answer any questions you may have about this fund.
+44 (0)20 7415 6490
INVESTOR SERVICES AND DEALING TEAM
T: 0345 606 6180 (Mon-Fri, 08:30 - 17:30)
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CANADA LIFE INVESTMENTS HEAD OFFICE
T: +44 (0)20 7415 6490