The LF Canlife UK Equity and Bond Income Fund aims to generate an above-average income and moderate long-term capital growth by mainly investing in a mixture of UK equities and fixed income securities.
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 manager to seek out the best sources of yield.
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 therefore are consistent dividend-payers.
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 manager seeks to generate an attractive income as well as an element of capital growth over the long-term by holding a diversified portfolio of company shares and fixed interest securities.
The fund is typically allocated between 70% - 80% to equities, with the balance in UK fixed interest securities, including corporate bonds, gilts, convertible stocks and preference shares. For the equity component, the management team takes a long-term view and seeks to keep turnover at lower levels, while, the fixed income holdings generate income while adding a lower volatility element to the portfolio.
The manager emphasises bottom-up stock selection with a flexible approach, as different valuation models suit different industries. When choosing to invest, the manager seeks to allocate to sectors where he see the best investment prospects, for example in defensive companies that continue to generate revenue in an economic downturn or cyclicals that do well when the economy is improving. The manager then seeks out companies that have strong balance sheets and good margins. In fixed income, the he draws on the expertise of Canada Life Investments’ credit analyst team, which is part of the fixed interest team. The fund manager takes a conservative approach, 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.
Head of Multi-Asset
Craig joined Canada Life Investments in March 2004. He became Head of UK Equities in March 2010 and was most recently appointed Head of Multi-Asset in May 2018.
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.
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 6546
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 6546