Unit Trust (UCITS compliant)

Legal & General UK Equity Income Fund

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Important customer notice:

The extreme market uncertainty caused by COVID-19 meant that trading in the L&G UK Property Fund was suspended from 18th March 2020. We intend that the fund will reopen on 13th October 2020. Find out more

Fund facts

Fund size
£199.1m
Base currency
GBP
Launch date
31 Mar 2011
Domicile
UK
Share class launch

Statistics

Historical yield
5.5%

As at 31 Aug 2020

Fund aim

The objective of the Fund is to provide income and growth above those of the FTSE All Share TR Net Index, the “Benchmark Index". The Fund aims to outperform the Benchmark Index by 2% per annum. This objective is before the deduction of any charges and measured over rolling three year periods.

Benchmark

FTSE All Share TR Net Index

  • What does it invest in? Invests at least 80% in the shares of UK companies.
  • How does it invest? Actively managed, with holdings in between 40 and 60 companies on average over a typical market cycle of 3-5 years.

Further details

Costs

Price basis
Dual
Initial charge
0.00%
Ongoing charges figure
1.43%
Bid / Offer spread
0.78%

Codes

ISIN
GB00B5VZFY75
SEDOL
B5VZFY7
Bloomberg
LGUEIRA
MEX
LGAACP

Dealing information

Valuation frequencyDaily, 12pm (UK time)
Dealing frequencyDaily
Settlement periodT+4

Monthly commentary

As at

The steady march higher for equity markets continued in August despite government bond yields grinding higher. Policy support remains favourable for equity investors, though economic recovery momentum appears to have stalled and COVID-19 cases continue to intermittently spike and decline around the world. From a bottom-up perspective, encouragingly we’ve started to see a gradual stream of companies begin to recommence dividend payments, which suggests some improvement in underlying business confidence.

The FTSE All Share Index reported a gain of +2.4%, which reflected relative underperformance against global indices. UK equity valuations are undemanding, though Brexit worries persist and market bias towards value sectors has not been helpful year-to-date (YTD). For sector performance, consumer services, industrials and technology led returns. Utilities, healthcare and energy industries were all weak in the period.

The L&G UK Equity Income fund delivered a positive return of +4.1% in August. Stock selection and sector allocation made positive contributions to performance. The portfolio benefitted from its overweight allocation to consumer services and its underweight positioning to healthcare and utilities. For stock selection, our holdings within industrials and consumer goods added most value. At a stock level, a number of our UK-domestic focused consumer companies performed strongly, including Dixons Carphone, SSP Group, GoCo, Next and Whitbread. GVC and John Wood Group also performed well. On the flipside, TP ICAP and Brewin Dolphin were the most notable underperformers within our active exposure. For trading activity, we have maintained our leisure exposure, but switched our position of Carnival into EasyJet.

Performance

Source: Lipper

Performance (%)
Select period:
Change

    Performance summary (%)

    As at 31 Aug 2020

    CumulativeFundBenchmark
    1 month4.072.42
    6 months-13.76-7.59
    Year to date-27.57-18.54
    3 years-24.88-8.16
    5 years-11.7217.32
    Since launch20.10-
    AnnualisedFundBenchmark
    1 year-17.48-12.62
    3 years-9.09-2.80
    5 years-2.463.24
    Since launch1.96-

    As at 30 Jun 2020

    CumulativeFundBenchmark
    Quarterly8.9310.17
    Year to date-26.46-17.51
    3 years-23.64-4.60
    5 years-13.1515.17
    Since launch21.94-
    AnnualisedFundBenchmark
    1 year-21.44-12.96
    3 years-8.59-1.56
    5 years-2.782.86
    Since launch2.17-
    Rolling 12-month performance
    Calendar year performance
    Monthly performance
    Annualised performance

    Rolling 12-month performance to last quarter end (%)

    12 months to 30 June 2016 2017 2018 2019 2020
    Fund-3.2917.624.42-6.86-21.49
    Benchmark2.2118.129.020.57-12.99

    Calendar year performance (%)

    2015 2016 2017 2018 2019
    Fund5.406.949.74-16.6820.32
    Benchmark0.9816.7513.10-9.4719.17

    Monthly performance (%)

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-17.48-9.09-2.461.96
    Benchmark-12.62-2.803.24-

    Annualised performance (%)

    1 year3 years5 yearsSince launch
    Fund-21.44-8.59-2.782.17
    Benchmark-12.96-1.562.86-

    Performance for the unit class in GBP, launched on . Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the unit class in GBP, launched on 18 April 2013. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C Acc unit class in GBP, launched on 28 February 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the C Inc unit class in GBP, launched on 28 February 2018. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the F Acc unit class in GBP, launched on 20 December 2012. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the F Inc unit class in GBP, launched on 20 December 2012. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I Acc unit class in GBP, launched on 31 March 2011. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the I Inc unit class in GBP, launched on 31 March 2011. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the L Acc unit class in GBP, launched on 25 April 2019. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the L Inc unit class in GBP, launched on 31 March 2011. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the R Acc unit class in GBP, launched on 31 March 2011. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Performance for the R Inc unit class in GBP, launched on 31 March 2011. Source: Lipper. Performance assumes all fund charges have been taken and that all income generated by the investments, after deduction of tax, remains in the fund.

    Past performance is not a guide to the future.

    Portfolio

    As at 31 Aug 2020. All data source LGIM unless otherwise stated. Totals may not sum due to rounding.

    Market capitalisation (%)

    Large74.4
    Mid20.1
    Small3.4
    Micro1.2
    Cash and Equivalents1.0
    Top 10 holdings34.5
    Rest of portfolio65.5
    No. of holdings46

    Top 10 holdings (%)

    Rio Tinto4.1
    BHP Group Plc3.9
    Direct Line Insurance3.7
    Phoenix Group Holdings3.6
    Prudential3.5
    Next3.3
    Imperial Brands3.3
    British American Tobacco3.2
    GlaxoSmithKline3.1
    Goco Group3.0

    Country (%)

    United Kingdom100.0

    Top sector over/underweights (%)

    FundRelative
    Financials35.29.9
    Consumer Services19.57.2
    Telecommunications3.21.0
    Basic Materials9.70.9
    Oil & Gas6.4-1.0
    Industrials10.4-2.4
    Utilities0.0-3.4
    Consumer Goods11.9-3.6
    Health Care3.1-8.0

    Top 5 stock over/underweights (%)

    FundRelative
    Direct Line Insurance3.73.4
    Phoenix Group Holdings3.63.4
    Goco Group3.03.0
    Next3.32.9
    Imperial Brands3.32.6
    Royal Dutch Shell2.5-2.0
    Reckitt Benckiser Group0.0-2.4
    Diageo0.0-3.1
    HSBC Holdings0.0-3.5
    AstraZeneca0.0-5.7

    Fund Manager

    Stephen joined LGIM in 2017 as a Fund Manager for the UK Equity Income portfolios. He has been managing the UK Equity Income Trust since November 2017. Stephen joined from Old Mutual where he was responsible for the management of the Old Mutual UK Equity Income fund from 2009 until 2016. Prior to that, he was a Fund Manager at Bessemer Trust from 2006 until 2008. Stephen graduated from Imperial College London with a MEng in Aeronautical Engineering. He is also a CFA charterholder.

    StephenMessage

    Literature

    Income

    Latest dividends

    The latest dividends are shown below. The historic level of income generated by this fund may go down as well up and will vary over time.

    of

    Dividend history

    Total dividends paid in each financial year of the fund.

    Prices

    Name
    C GBP Acc
    Bid price
    36.93p
    Offer price
    37.21p
    Absolute change
    -0.0032
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    C GBP Inc
    Bid price
    32.84p
    Offer price
    33.08p
    Absolute change
    -0.0028
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Acc
    Bid price
    60.10p
    Offer price
    60.56p
    Absolute change
    -0.0052
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    F GBP Inc
    Bid price
    40.33p
    Offer price
    40.64p
    Absolute change
    -0.0035
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Acc
    Bid price
    62.17p
    Offer price
    62.64p
    Absolute change
    -0.0054
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    I GBP Inc
    Bid price
    41.70p
    Offer price
    42.02p
    Absolute change
    -0.0036
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    L GBP Acc
    Bid price
    36.67p
    Offer price
    36.95p
    Absolute change
    -0.0032
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    L GBP Inc
    Bid price
    44.76p
    Offer price
    45.10p
    Absolute change
    -0.0039
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Acc
    Bid price
    57.46p
    Offer price
    57.89p
    Absolute change
    -0.005
    Currency
    GBP
    Price time
    12:00 UK time
    Name
    R GBP Inc
    Bid price
    38.54p
    Offer price
    38.83p
    Absolute change
    -0.0033
    Currency
    GBP
    Price time
    12:00 UK time

    Key risks

    The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested.

    Past performance is no guarantee of future results.

    The fund could lose money if any institution providing services such as acting as counterparty to derivatives or other instruments, becomes unwilling or unable to meet its obligations to the fund.

    Derivatives are highly sensitive to changes in the value of the asset on which they are based and can increase the size of losses and gains. The impact to the fund can be greater where derivatives are used in an extensive or complex way.

    The fund may have underlying investments that are valued in currencies that are different from sterling (British pounds). Exchange rate fluctuations will impact the value of your investment. Currency hedging techniques may be applied to reduce this impact but may not entirely eliminate it.

    We may take some or all of the ongoing charges from the fund's capital rather than the fund's income. This increases the amount of income, but it reduces the growth potential and may lead to a fall in the value of the fund.

    Index disclaimer

    Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2020. FTSE Russell is a trading name of certain of the LSE Group companies. “FTSE®” is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

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