Fact sheet: Franklin UK Equity Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
UT UK Equity Income
Fund type
OEIC
Primary aim
No data available.
Why Money Observer Rates Franklin UK Equity Income

New for 2017. Able to strike while the iron is hot

A major attraction of this fund is the longevity and strong track record of its manager. Colin Morton has managed this fund since 1995 and has the longest unbroken management tenure in the Investment Association's UK equity income fund sector.

Its yield is currently 4 per cent and it pays income quarterly. Consistent increases in income have been a priority for Morton and under his tenure it has achieved average annual income growth of over 5 per cent. A cap of 0.55 per cent placed on the fund's ongoing charges in 2016 has increased its attraction.

Morton's style is described as a simple, common-sense approach, focusing on high-quality, predominantly large UK companies with strong balance sheets and minimal leverage. Blue-chip stocks have always been a favourite due to their 'secure and reliable' characteristics, though the price needs to be right.

Morton is always ready to take advantage of buying opportunities. The six-strong Franklin UK equity team sit together and talk about investment ideas and stocks all the time.

As a result, once they have done all the research on the stocks they like, if buying conditions are not right, rather than discard the ideas they will put them to one side until the valuation becomes more compelling.

When that happens Morton is in a position to make an instant decision to get a company into his portfolio. With the volatility in the UK market in 2016, this ability to act quickly proved particularly useful.

3 Year Performance
Fund Performance22.8%
Average of Rated Funds Group22.3%
Sector Performance16%
Fund information
Fund name
Franklin UK Equity Income W Acc
Fund manager company
Franklin Templeton Funds (UK)
Fund type
OEIC
Fund managers
  • Ben Russonsince 01/09/2013
  • Colin Mortonsince 01/01/1995
  • Mark Hallsince 01/09/2013
Accolades
Fund objective
Aims to provide a growing level of income which is higher than that of the FTSE All-Share Index, together with capital growth over the medium to long term (meaning 3-5 years). Capital in the Fund is at risk and there is no guarantee that the objective will be achieved over that, or any, time period.
Benchmark
  • FTSE All Share
Investment style
Active
Investment method
Shares
Quick stats
1 Year return
4%
1 Year rank in sector
38/94
Sector
UT UK Equity Income
Yield
4.5%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.54%
Fund size
£522m (£322m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
88
Mid price
193.61
Top in this sector
Fund name1 Year
Man GLG UK Income15.7%
MI Chelverton UK Eq Inc13.1%
LF Miton UK Multi Cap Inc10.4%
MI DowningMthlyInc10.3%
Courtiers UK Equity Income9.8%
...more in UT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK96.5%
    Money Market3.6%
  • Others23.5%
    Household Goods13.3%
    Industrials11.9%
    Oil & Gas9.3%
    Health Care9%
  • UK Equities96.5%
    Cash & Cash Equivalents3.6%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-6.6%-2.2%-2.3%4%22.8%59.6%
Sector-6.2%-1.8%-1.7%3.3%16%45.3%
Rank within sector63 / 9962 / 9867 / 9738 / 9413 / 8416 / 78
Quartile3rd3rd3rd2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund-5.2%12%15.3%5.5%6.9%
Sector-4.9%11.2%9.1%4.9%2.8%
Rank within sector58 / 9932 / 947 / 8948 / 8412 / 82
Quartile3rd2nd1st3rd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
2.07
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.95
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.63
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
8.63
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
3.67
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.46
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.83
Price movement
52 week high207.34
52 week low186.09
Current bid price-
Current offer price-
Current mid price193.61
Region
1UK96.45%
2Money Market3.55%
Industry sector
1Others23.5%
2Household Goods13.26%
3Industrials11.88%
4Oil & Gas9.33%
5Health Care8.96%
6Insurance7.79%
7Financial Services6.57%
8Media5.32%
9Banks5.1%
Asset type
1UK Equities96.45%
2Cash & Cash Equivalents3.55%
Individual holdings
1ROYAL DUTCH SHELL4.67%
2BP PLC4.63%
3BRITISH AMERICAN TOBACCO PLC3.71%
4HSBC HOLDINGS PLC3.52%
5ASTRAZENECA PLC3.46%
6IMPERIAL TOBACCO GROUP PLC3.15%
7GLAXOSMITHKLINE PLC3.05%
8DIAGEO PLC3.01%
9VODAFONE GROUP2.95%
Management
Fund manager group
Franklin Templeton
Fund manager company
Franklin Templeton Funds (UK)
Fund type
OEIC
Fund objective
Aims to provide a growing level of income which is higher than that of the FTSE All-Share Index, together with capital growth over the medium to long term (meaning 3-5 years). Capital in the Fund is at risk and there is no guarantee that the objective will be achieved over that, or any, time period.
Benchmark
  • FTSE All Share
Investment style
Active
Investment method
Shares
Fund managers
NameSinceBiography
Ben Russon01/09/2013Ben Russon is a vice president and portfolio manager based in Leeds as part of Franklin Templeton Fund Management. He is the lead manager on the Franklin UK Opportunities Fund and co-manager on the Franklin UK Managers' Focus Fund. Mr. Russon joined the Franklin Templeton UK Equity team during 2013. Prior to this he spent 13 years as a fund manager with Newton Investment Management, specialising in UK Equities. He was the lead manager on the Newton UK Opportunities Fund from 2005, alongside associated institutional mandates. Previously he worked at Newton in the research function, specialising in the global food retail sector. Wider responsibilities also included global equity investment with the Newton Osprey Fund. Mr. Russon graduated from the University of Edinburgh with an M.A. (joint honours) in geography and economics. He is a Chartered Financial Analyst (CFA) charterholder.
Colin Morton01/01/1995Colin Morton, Lead Manager of the Franklin UK Equity Income Fund and Franklin UK Blue Chip Fund and specialises in large cap UK equity analysis and investment. Mr. Morton joined Franklin Templeton Investments when it acquired Rensburg Fund Management (now Franklin Templeton Fund Management) in January 2011. Mr. Morton began his career in 1983 as a trainee stockbroker with Wise Speke & Co. He joined Rensburg in 1988 as a private client executive, becoming an investment manager in 1991. He became the manager of Rensburg UK Equity Income Trust in January 1995, manager of the Rensburg UK Blue Chip Growth Trust in September 2000 and has been a joint manager of the Rensburg UK Managers Focus Trust since its launch in September 2006. On the 15 October 2011, all three trusts were merged into newly created sub funds the Franklin Templeton Funds OEIC range and renamed to reflect the Franklin Templeton brand. During his tenure as manager, Franklin UK Equity Income Fund and Franklin UK Blue Chip Fund have held OBSR ratings for at least five consecutive years as at 30 June 2011. Mr. Morton holds an Investment Management Certificate (IMC) and is a Fellow of the Securities Institute (FSI).
Mark Hall01/09/2013Mark Hall is a member of the highly-regarded Franklin UK Equity Team. He specialises in multi-cap UK equity analysis. Mark joined Franklin Templeton Investments when it acquired Rensburg Fund Management in January 2011. After training as an accountant, Mr. Hall joined BWD Rensburg in 1988 as a Smaller Companies investment analyst, subsequently managing private client discretionary portfolios. Mark became fund manager of the BWD Equity Growth Trust in 1997, investing in the UK All Companies Sector. In 2001 he became the lead manager of BWD Aggressive Growth Trust, (which was subsequently renamed Rensburg UK Select Growth Trust). In April 2013 Mark relinquished his portfolio management responsibilities in order to focus on providing research and analysis. Mr. Hall holds a B.A. (Hons) geography with additional economics from Exeter University. He also holds an Investment Management Certificate (IMC).
Compliance
IA Recognised, UCITS V Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Franklin UK Equity Income A Acc
Initial charge4.5%
Annual charge1.5%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)1.59%
Total expense ratio (TER)1.59%
Bid price-
Offer price-
Mid price185.75
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeB07M
Franklin UK Equity Income A Inc
Initial charge4.5%
Annual charge1.5%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)1.59%
Total expense ratio (TER)1.59%
Bid price-
Offer price-
Mid price237.66
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeYO02
Franklin UK Equity Income W Acc
Initial charge-
Annual charge0.45%
Min single investment£1,000,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)0.54%
Total expense ratio (TER)0.54%
Bid price-
Offer price-
Mid price193.61
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeG25P
Franklin UK Equity Income W Inc
Initial charge-
Annual charge0.45%
Min single investment£1,000,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)0.54%
Total expense ratio (TER)0.54%
Bid price-
Offer price-
Mid price155.66
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeG25O
Franklin UK Equity Income Z Acc
Initial charge-
Annual charge0.95%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)1.04%
Total expense ratio (TER)1.04%
Bid price-
Offer price-
Mid price190.51
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeG25N
Franklin UK Equity Income Z Inc
Initial charge-
Annual charge0.95%
Min single investment£1,000
Min regular saving£250
Available in ISAYes
Ongoing charge (OCF)1.04%
Total expense ratio (TER)1.04%
Bid price-
Offer price-
Mid price152.05
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeG25M
Data provided by

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