Key Morningstar Metrics for Man Income Fund
- : BronzeMorningstar Medalist Rating
- : HighProcess Pillar
- : Above AveragePeople Pillar
- : AverageParent Pillar
Man Income is a compelling option for investors who appreciate the approach of Man Undervalued Assets but seek an added income focus. Our conviction has strengthened, underpinned by the team’s consistent execution of this mandate, and we therefore upgrade the Process rating to High from Above Average, while maintaining the People rating at Above Average.
Henry Dixon took over the management of this strategy in November 2013, shortly after joining Man Group. Although his record stems mainly from his mainstream UK equities mandates, the same value-based investment philosophy that he employs on Man Undervalued Assets underpins the approach on this UK equity-income product. He is supported by a team that includes comanagers on the Undervalued Assets strategy: Jack Barrat and James Houlden, and analysts Erin Ennis, who joined in the first quarter of 2020, and Hannah Burrows, who joined the team in July 2022. The team is adequately resourced to meet the needs of the approach.
This strategy targets the same types of stock as Undervalued Assets, seeking to identify two main types: those trading below their estimate of the company’s asset value and those where the company’s profit stream is being undervalued relative to the cost of capital, with the additional caveat here of a yield of at least that of the market. It also targets one further type of opportunity: companies with net cash balance sheets and strong free cash flows, which can lead to positive dividend surprises. As well as the focus on valuation, the process also steers the manager toward elements of quality and positive earnings momentum. Our conviction stems from Dixon’s demonstrated ability to consistently execute the investment process with discipline.
The valuation-conscious approach is expected to perform well in an environment more favorable to value stocks and in a rising bond yield environment, given its discipline on the cost of capital and balance sheet strength. At the same time, the strategy can have periods of underperformance during growth rallies.
The strategy has outperformed significantly from 2022 through the end of April 2026, benefiting from the value tailwind throughout the period, as well as strong stock selection. Traditional value and income sectors—financials, materials, and utilities—have all performed exceptionally well.
The strategy’s long-term record remains strong since Dixon assumed portfolio-management responsibilities on Nov. 30, 2013. In addition, it has also been consistent in producing a dividend yield above the market.
Man Income Fund: Performance Highlights
Performance over the manager’s tenure from November 2013 has been strong, with the strategy comfortably outperforming the index and Morningstar Category average to the end of March 2026. The relatively unconstrained approach and meaningful allocation to stocks lower down the market-cap scale mean that returns can differ significantly from those of the index and category average. Volatility over the manager’s tenure has been higher than that of the index and category average, as one might expect given the above. However, investors have been rewarded for this: Risk-adjusted return measures have also been superior to both comparators. Over the longer term, stock selection is expected to be the primary driver of relative performance.
In 2024, the fund was ahead of the index and peers. Stock selection in financials was positive, with holdings in Barclays, Beazley, NatWest, Plus500, IG Group, and HL among the key contributors.
In 2025, the fund once again outperformed both its benchmark and peers. Performance was driven primarily by an overweight position and strong stock selection within financials, with notable contributions from bank holdings such as Barclays, AIB Group, OSB Group, and Standard Chartered. Stock selection in the materials sector also added meaningful value, particularly through positions in Rio Tinto and Endeavour Mining.
