Why invest in the Rathbone Income fund
- Co-managers Alan Dobbie and Carl Stick have more than 45 years’ combined experience in UK equity income, 17 of them working as a team
- A flexible investment style, emphasising that valuations really matter, maximises investment opportunities across the UK market
We use our own Trinity of Risk framework to create a balanced portfolio of UK stocks that aims to pay you a better dividend than the FTSE All-Share stock market index and which grows over time. Because we own only a small number of companies compared with the wider UK stock market, our performance can deviate significantly from the return of the index. But we argue that to beat the index, you have to do something different.
Our Trinity of Risk incorporates:
- Business risk – how secure are company profits? How may this change?
- Financial risk – how does the company fund itself? How much has a company borrowed? Is it over indebted? Does it have sufficient cashflow to run its business and pay dividends?
- Price risk – is the share price higher or lower than it should be? Are we compensated for the risks we are taking?
More about the Income Fund
We want to buy businesses that make strong and consistent profits with high-quality earnings – those that are backed by real cashflows rather than promises by customers to pay later. We are acutely aware that companies shouldn't have more debt than they can handle. We buy businesses with healthy cashflow because we believe it gives them the flexibility to repay debts when they come due and, reinvest in their businesses to ensure profits that grow, and therefore be able to pay a dividend.
The objective of our fund is to deliver an annual income that is in line with or better than that of the FTSE All-Share Index over any rolling three-year period. The fund aims to generate a greater total return than the FTSE All-Share Index, after fees, over any five-year period.
There is no guarantee that this investment objective will be achieved over five years, or any other time period. We use this index as a target for our fund’s return and the income we pay because we want to offer you a better income and higher returns than the UK stock market. You can find our fund’s full objective and investment policy in our Key Investor Information Document (KIID).
Awards and ratings
Meet the fund managers
Carl Stick
Fund manager and Executive director
Alan Dobbie
Fund manager
Longevity matters I
In the first video of the series, Carl Stick, fund manager, discusses getting old, argues for the valuable contributions to society that ageing populations can make, thinks about the implications this has for investments, and reminds us that ‘longevity matters’.
Longevity matters II
In the next video of the series, Carl Stick, fund manager, looks at ageing demographics and the impact this is having on retirement age. As people live longer, the need to supplement their nest egg with an extra income to support a healthy and happy lifestyle in their retirement is growing. Carl also considers the health implications of an older workforce and the importance of the healthcare sector in keeping us working and playing as we get older.
