MI Chelverton UK Equity Income Fund B Accumulation shares

UK Equity Income

Rated Fund 2014-19. Targets yields of 4% plus

This fund has been highly commended in past Money Observer fund awards. It has been managed since launch in 2006 by David Horner, the founder of Chelverton, and David Taylor. ­

The fund’s investment universe consists of small and medium-sized UK companies, which can make it more volatile than other funds in its peer group over shorter periods. ­The fund has been a standout performer over the longer term, though.

The managers believe opportunities exist in this area because the dull-but-worthy smaller companies they favour are often overlooked and under-researched by stockbrokers and other income fund managers. ­The fund currently yields 5.3%. Income is paid quarterly.

­The managers have a clear investment process. They will only invest in a company for the first time if it yields at least 4% on a 12-month view. ­This is a cast-iron rule to which there are no exceptions. ­

They screen all small and medium-sized companies above £50 million in size regularly to identify targets. ­They then test companies’ balance sheets to ensure firms don’t have too much debt and that their working capital requirements are not excessively onerous. Sales growth and margins are examined. Th­e aim is to build a portfolio of companies that will grow their dividends from one year to the next.

Provided the managers are satisfied, they will invest in a company and may add to their holding until the yield falls to 3%, following share price appreciation. Once the holding gets to 2%, it will be sold and another higher-yielder will be added to their portfolio of around 100 stocks.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
MI Chelverton UK Equity Income Fund B Accumulation shares
Maitland Institutional Services Ltd.
Open Ended Investment Company
UK Equity Income
0.86 %
Risk Rating
3 Year Sharpe
3 Year Alpha
4.8 %
The objective of the Fund is to provide a progressive income stream and achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities. The Fund will invest primarily in UK companies which aim to provide a high initial dividend; progressive dividend payments, and long-term capital appreciation. The Fund will not invest in derivatives or forward transactions
Holding %
Rank Group (The) PLC 2.08 %
XP Power Ltd 1.86 %
BCA Marketplace PLC 1.76 %
Marston's PLC 1.63 %
National Express Group PLC 1.62 %
Sabre Insurance Group PLC 1.61 %
TT Electronics PLC 1.61 %
Babcock International Group PLC 1.59 %
Pennon Group PLC 1.54 %
Ultra Electronics Holdings PLC 1.54 %
Region %
United Kingdom 96.57 %
Sector %
Industrials 33.32 %
Consumer Cyclical 23.62 %
Financial Services 16.10 %
Technology 6.93 %
Basic materials 5.70 %
Maitland Institutional Services Ltd.
London, United Kingdom
Legal Structure
Open Ended Investment Company


David Taylor
Joined 11/27/2006

David Taylor began his career as an analyst in the research department at Wedd Durlacher and moved into fund management in 1987 with the Merchant Navy Officers Pension Fund. He joined Gartmore Investment Limited in 1991, during this time, he ran a combination of institutional funds and investment trusts, namely the Clydesdale Investment Trust and London & Strathclyde Trust. In 1995, he moved to LGT to manage small cap retail funds and latterly spent nearly seven years as head of UK smaller companies at HSBC Asset Management. He joined Chelverton Asset Management in January 2006.

David Horner
Joined 11/27/2006

David Horner joined 3i Corporate Finance Limited in 1986 where he was a manager giving corporate finance advice. In May 1993 he joined Strand Partners Limited, and was appointed a director in January 1994, where he carried out a range of corporate finance assignments identifying, structuring and managing investments in quoted and unquoted companies. In October 1997 he left to set up Chelverton Asset Management Limited and was responsible for setting up, in May 1999, the Small Companies Dividend Trust, which he still manages.

Data provided by Morningstar.

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