Santander Enhanced Income Portfolio
|Bid Price||-||Offer Price||-|
|Mid Price||GBX 166.80||Day Change||GBX +0.60 (0.36%)|
|Price Date||21 Oct 2016||Crown Rating|
|Shares Class||Inc.||Yield||4.47 %|
|Total Expense Ratio||0.00||Fund Size||43,912,160.25|
|Launch Date||01/04/2009||Standard Initial Charge (%)||7.00|
|Annual Management Charge (%)||0.50||Sector||IMA UK Equity Income|
|Min Investment (£)||1,000,000.00||Total Expense Ratio (%)||0.00|
|ISIN||GB00BWXBPQ49||Min TopUp (£)||1.50|
The aim of the Fund is to provide investors with enhanced income returns, and holdings are likely to include but are not limited to UK shares, sale of covered call options, UK Fixed Interest Securities (from time to time) and cash deposits. Investment may also be in a mixture of collective investment schemes and other assets described in section 2.1 of the prospectus, including but not limited to fixed interest investments, warrants and derivatives.Enhanced IncomeThe fund will use a ‘covered call option strategy’ to help achieve an enhanced level of income. With this strategy, by selling call options, the fund manager in effect sells some of the potential future capital growth in some of the shares in exchange for an immediate lump sum. In doing this the manager takes on the risk that some capital appreciation may be given up on the portfolio in exchange for an enhanced level of income. The Manager receives a payment in exchange for taking this risk, hence increasing the income beyond the normal dividends received from the shares. Only some of the potential growth is sold in this way, and therefore the fund can still enjoy some capital growth. Additionally for some shares the strategy will not be adopted. This flexibility combined with the ability to invest in bonds ensures that the manager is able to adopt the strategy that is most efficient given market conditions at that time.
Graham Ashby, Manager of the Santander UK Growth, N&P UK Growth Funds and Santander Premium UK Equity Fund, has 24 years’ experience of equity fund investments and held several fund manager roles over this time. Prior to joining Santander Asset Management UK, Graham was Head of UK Equities at Ignis Asset Management. He is a bottom-up stock picker who invests across the market capitalisation spectrum, principally in companies with a proven track record of creating value for shareholders. He adopts a disciplined approach to portfolio construction with the aim of taking an appropriate level of risk to achieve outperformance targets. Prior to his role at Ignis, Graham held senior equity positions at LV=Asset Management and Credit Suisse Asset Management.