Aviva Investors UK Equity Income: Taking a long term approach that focuses on growth
This Income fund looks for the holy grail of providing a dividend for its investors while also owning shares that will increase in value.
The Aviva Investors UK Equity Income fund seeks to do this by investing in British firms with under-valued shares.
It looks at the long-term picture rather than worrying about short-term ups and downs. A lot of its focus is on the FTSE All-Share index, so you'll find big names in the portfolio such as Vodafone, BP and Glaxosmithkline.
Holy grail: The The Aviva Investors UK Equity Income fund seeks to provide a dividend for its investors while also owning shares that will increase in value, so so you'll find big names in the portfolio such as Vodafone, BP and Glaxosmithkline
Two companies that have done particularly well for the fund are engineering group Melrose and BBA Aviation, which has grown its share price from 70p to £3.14 since the fund has owned shares.
Who runs it?
Chris Murphy was born in Warwickshire and studied physics at Cardiff University, which he insists isn't so different from fund management: 'They are both all about numbers and research.'
Chris, 44, started out in investment banking and later moved to Axa Framlington as an assistant fund manager. He joined Aviva eight years ago and has been running this fund since 2009.
How £1,000 investment has performed over...
One year - £1,062
Three years - £1,350
Five years - £2,115
Who is he?
He's not a morning person. The alarm goes off in his Hertfordshire bedroom at 6.15am, where it's thrown across the room before he gets up at 6.30am. He takes his 13-year-old daughter to the bus stop at 7am and then heads off to the station for a 30-minute train ride into the office.
The morning is spent chatting to other managers about various company news and then he spends much of the rest of the day researching or in meetings.
Weekends are spent indulging his cycling hobby - he is a coach for local children and enjoys fixing up bikes. When he's not doing that he's the family taxi service or is being dragged round the shops by his wife and daughter.
The inside scoop
UK firms have had a good run for a few years and some experts are predicting that may be drawing to a close.
Others think big firms should still pay out decent dividends, making the income portion of equity income funds important.
Mr Murphy thinks things will 'move sideways' for the next few months - no big ups or downs.
One area that may contain opportunities is new companies floating on the stock market: 'We have avoided over-valued stock market launches, but interesting ones are starting to come up.'
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