Overview
WHAT IS IT?
A directly invested, segregated service that aims to achieve capital growth and income from a portfolio of UK listed shares. Shares will generally be drawn from the Official List of the London Stock Exchange and from alternative markets including AIM.
WHY KILLIK & CO?
As an independently-owned investment house with our own in-house research teams, we are free to develop investment ideas and strategies whilst avoiding any conflicts of interest.
WHO IS IT RIGHT FOR?
The UK Growth (Core) Equity Service is aimed at those seeking to include sterling denominated exposure to UK companies within their investment portfolio. The minimum investment is £20,000.
The Service
Our portfolios are based upon a structured investment process which draws upon our independent research. Our stock selection process is focused open a variety of different factors including value, growth, income generation and long-term potential.
The income generated by the service can either be retained and reinvested or paid out to your bank account.
Investment Process
The UK Growth (Core) Equity Service is managed according to an investment process that focuses on a number of characteristics, including:
ATTRACTIVE VALUATION
The value of any company is the estimated present value of its future cash returns to shareholders. We carefully analyse historic financial statements and based on our understanding of the individual businesses, carefully consider how free cash flow, and potentially dividends, will develop into the future.
COMPETITIVE ADVANTAGE
We look for companies with sustainable profit margins – based on brands, ‘sticky’ customers, or cost advantages, for example – that will give them the best chance of staying ahead of the competition, and protecting their above-average profitability.
CASH CONVERSION
Accounting profits, are based on the ‘accrual’ method of accounting, by which income is recorded when earned and expenses when incurred, not when cash changes hands. To gauge a company’s self-funded growth potential or likely dividend payments to shareholders, we pay close attention to how consistently it can convert its paper profits into cash.
THE DIFFERENCE BETWEEN THE CORE AND FOCUSED MANDATES
The UK Growth (Core) Equity Service has two mandates: the Core and the Focused.
- The Core service is more focused on established companies, with typically greater exposure to the FTSE Main List, whereas the Focused service has greater exposure to AIM.
- The Core service will tend to have more holdings in a typical portfolio compared to the Focused service.
- The benchmark for the Core service is the FTSE All-Share, whereas it’s the Numis Smaller Companies Index plus AIM (excluding Investment Trusts) for the Focused service.
Risks to be aware of
Investing in the UK Growth (Core) Equity Service will bring exposure to smaller and medium-sized companies in addition to large companies, such as those in the FTSE 100 Index. Shares in smaller and medium sized companies typically carry a higher degree of risk than investing in the shares of larger, more established companies.
The actual risk of your individual portfolio will depend upon a combination of market risk and stock-specific risk, which can be mitigated by the portfolio manager through diversification. Portfolios, however, could be concentrated in a relatively small number of stocks (typically 20-30).
As is the very nature of investing, the value of your investments will rise and fall over time. Please do not assume that past performance will repeat itself and you must be comfortable in the knowledge that you may receive less than you originally invested.
Find out more
Contact us on +44 (0) 20 7337 0777 or send us an email at [email protected] to find out more about our UK Growth (Core) Equity Service or alternatively fill out the form below to download the brochure.
