Fact sheet: Threadneedle Monthly Extra 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.
MIXED ASSET - HIGHER RISK
Sector
UT UK Equity & Bond Income
Fund type
OEIC
Primary aim
INCOME
Why Money Observer Rates Threadneedle Monthly Extra Income

Rated Fund 2013-2017. Combining regular income with a focus on total return

This popular fund appears in the Investment Association's smallest mixed-asset sector - UK equity and bond - and has been a top performer in that sector over the short, medium and long term. A great attraction for income-seekers is the fact that it pays income monthly. Its yield is around 4 per cent.

Its portfolio is typically around 70-80 per cent invested in UK equities, while sterling-denominated bonds make up the remainder. The managers are Richard Colwell, who is responsible for the equity portfolio, and Alasdair Ross, who looks after the fixed interest side.

The fund's aim is to provide smooth, sustainable income growth, while also offering the prospect of capital growth. The fund's first 11 monthly income payments are of equal size, with a final, typically larger, distribution at the end of the year.

The fund typically has a diversified portfolio of 40 to 60 shares and fixed income securities from over 100 issuers. In total the fund currently has over 200 holdings. As the fund is managed for total return, not just income, the managers aim to combine higher-yielding investments with capital-growth opportunities.

General economic trends are taken into account by the managers when looking for long-term investment themes. However, company research is the key part of the investment process.

The managers particularly look for companies trading on attractive valuations with robust business and financial models, and solid management teams. Additional value is added through tactical rebalancing between the equity and bond components of the fund.

3 Year Performance
Fund Performance15.4%
Average of Rated Funds Group28.2%
Sector Performance17.5%
Fund information
Fund name
Threadneedle Monthly Extra Income Z Inc GBP
Fund manager company
Threadneedle Inv Services Ltd
Fund type
OEIC
Fund managers
  • Alasdair Rosssince 31/03/2009
  • Richard Colwellsince 01/03/2010
Accolades
Fund objective
The aim of the Fund is to provide income with the potential to grow the amount you invested. The Fund invests at least two-thirds of its assets in shares in UK companies and in bonds (which are similar to a loan and pay a fixed or variable interest rate) issued in British Pounds. The Fund may also invest in asset classes and instruments different from those stated above.
Benchmark
  • No Specified Index
Investment style
Aggressive
Investment method
None
Quick stats
1 Year return
0.9%
1 Year rank in sector
22/27
Sector
UT UK Equity & Bond Income
Yield
3.9%
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.
0.73%
Fund size
£372m (£377m 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.
71
Mid price
133.22
Top in this sector
Fund name1 Year
VT Arden10.8%
First Arrow Diversified10.1%
S&W Hercules Growth7.8%
Carvetian The New Shoots6.1%
Jupiter Monthly Income6%
...more in UT UK Equity & Bond Income

Performance snapshot

Holdings snapshot

  • UK99.2%
    Money Market0.8%
  • Fixed Interest22%
    Industrials16.5%
    Financials14.1%
    Consumer Staples11.7%
    Consumer Discretionary9.7%
  • UK Equities77.6%
    UK Fixed Interest21.6%
    Money Market0.8%

Fund also available on these pension platforms:

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-5.5%-3.5%-3.8%0.9%15.4%51.8%
Sector-4.6%-1.8%-0.4%3.7%17.5%40.2%
Rank within sector19 / 2725 / 2725 / 2722 / 2717 / 243 / 22
Quartile3rd4th4th4th3rd1st
Calendar performance
 YTD - 20182017201620152014
Fund-4.5%7.2%13%3.9%7.2%
Sector-3.3%9.4%11.7%2.7%5.5%
Rank within sector18 / 2721 / 279 / 268 / 244 / 23
Quartile3rd4th2nd2nd1st
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.
-0.18
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.
1.06
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.
0.37
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%.
7.51
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.
2.51
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.
0.06
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.
0.89
Price movement
52 week high147
52 week low132.16
Current bid price-
Current offer price-
Current mid price133.22
Region
1UK99.2%
2Money Market0.8%
Industry sector
1Fixed Interest22%
2Industrials16.5%
3Financials14.1%
4Consumer Staples11.7%
5Consumer Discretionary9.7%
6Health Care9.3%
7Information Technology4.7%
8Materials3.3%
9Energy3%
Asset type
1UK Equities77.6%
2UK Fixed Interest21.6%
3Money Market0.8%
Individual holdings
1ASTRAZENECA PLC5.4%
2GLAXOSMITHKLINE3.9%
3ELECTROCOMPONENTS3.5%
4IMPERIAL BRANDS PLC3.5%
5MORRISON(WM.)SUPERMARKETS2.9%
6ROYAL DUTCH SHELL2.9%
7UNILEVER2.7%
83I GROUP2.5%
9RENTOKIL INITIAL2.5%
Management
Fund manager group
Threadneedle
Fund manager company
Threadneedle Inv Services Ltd
Fund type
OEIC
Fund objective
The aim of the Fund is to provide income with the potential to grow the amount you invested. The Fund invests at least two-thirds of its assets in shares in UK companies and in bonds (which are similar to a loan and pay a fixed or variable interest rate) issued in British Pounds. The Fund may also invest in asset classes and instruments different from those stated above.
Benchmark
  • No Specified Index
Investment style
Aggressive
Investment method
None
Fund managers
NameSinceBiography
Alasdair Ross31/03/2009Alasdair Ross is Head of Investment Grade Credit, EMEA, with responsibility for our UK and European investment grade corporate credit teams based in London. Alasdair is lead portfolio manager across various global, euro and UK corporate credit portfolios including Threadneedle (Lux) Global Corporate Bond Fund, Threadneedle European Corporate Bond Fund, Threadneedle UK Corporate Bond Fund and is also deputy portfolio manager on the Threadneedle Credit Opportunities Fund.Alasdair’s investment background is as a fundamental, bottom-up, investment grade credit analyst. Between joining the company in 2003 and becoming a portfolio manager in 2007, he had responsibility for covering the TMT, utility and energy sectors, as well as the sterling whole business securitisation sector.Prior to joining the company, Alasdair worked at BP plc in a rotation of commercial roles. Alasdair has a first class honours degree in Politics, Philosophy and Economics from the University of Oxford.He also holds the Chartered Financial Analyst designation.
Richard Colwell01/03/2010Richard Colwell is a portfolio manager and Head of UK Equities at Columbia Threadneedle. He manages the Threadneedle UK Growth & Income Fund, Threadneedle UK Equity Income Fund and the Threadneedle UK Equity Alpha Income Fund. He also co-manages the Threadneedle Monthly Extra Income Fund and has research responsibility across all sectors.Before joining the company, Richard ran high alpha UK equity portfolios at Aviva Investors. He has also held portfolio management roles at Credit Suisse and Schroders and worked at the Bank of England.Richard has a degree in Banking, Insurance & Finance from the University of Bangor. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of the UK as well as the Chartered Institute of Bankers.
Compliance
Transparent for Austrian Tax, Transparent for Swiss Tax, Transparent for German Tax, IA Recognised, UCITS V Compliant, MAS Unrestricted Scheme
Domicile
No data available.
Fund for sale in
Austria, Belgium, Germany, Denmark, Spain, Finland, France, United Kingdom, Ireland, Italy, Luxembourg, Netherlands, Portugal, Singapore, Sweden
Threadneedle Monthly Extra Income 1 Ret Hedged Gr Acc EUR
Initial charge5%
Annual charge1.25%
Min single investment£2,500
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)1.36%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1.0573
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNU7L
Threadneedle Monthly Extra Income Ret Hedged Inc EUR
Initial charge5%
Annual charge1.25%
Min single investment£2,500
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)1.38%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1.3642
CurrencyEUR
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeM1MP
Threadneedle Monthly Extra Income Ret Inc GBP
Initial charge3.75%
Annual charge1.25%
Min single investment£2,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.38%
Total expense ratio (TER)1.39%
Bid price-
Offer price-
Mid price77.5
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeTH66
Threadneedle Monthly Extra Income Z Acc GBP
Initial charge3%
Annual charge0.6%
Min single investment£1,000,000
Min regular saving£0
Available in ISAYes
Ongoing charge (OCF)0.73%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price122.92
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeKOTH
Threadneedle Monthly Extra Income Z Hedged Gr Acc EUR
Initial charge3%
Annual charge0.6%
Min single investment£1,500,000
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.71%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price1.0617
CurrencyEUR
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeNU7M
Threadneedle Monthly Extra Income Z Inc GBP
Initial charge3%
Annual charge0.6%
Min single investment£1,000,000
Min regular saving£50,000
Available in ISAYes
Ongoing charge (OCF)0.73%
Total expense ratio (TER)0.73%
Bid price-
Offer price-
Mid price133.22
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeG7DE
Data provided by

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