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
0.87 %
Risk Rating
3 Year Sharpe
3 Year Alpha
5 %
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 %
Phoenix Group Holdings PLC 1.87 %
Ultra Electronics Holdings PLC 1.86 %
BCA Marketplace PLC 1.81 %
Ashmore Group PLC 1.80 %
Inchcape PLC 1.64 %
IMI PLC 1.58 %
TT Electronics PLC 1.54 %
Go-Ahead Group (The) PLC 1.53 %
National Express Group PLC 1.51 %
DFS Furniture PLC 1.50 %
Region %
United Kingdom 97.08 %
Sector %
Consumer Cyclical 30.03 %
Industrials 26.89 %
Financial Services 15.48 %
Technology 8.62 %
Basic materials 7.49 %
Maitland Institutional Services Ltd.
London, United Kingdom
Legal Structure
Open Ended Investment Company


David Taylor
Joined 11/27/2006

David is an award winning fund manager, who began his career as an analyst in the research department at Wedd Durlacher, later moving into fund management in 1987.He joined Gartmore Investment Limited in 1991. In 1995, he moved to LGT and latterly spent nearly seven years as head of UK smaller companies at HSBC Asset Management. David joined Chelverton Asset Management in January 2006. He earns him a AAA Citywire Fund Manager rating.

David Horner
Joined 11/27/2006

David is an acclaimed fund manager, specialising in small and mid-cap quoted investment and SME unquoted investment. He has many years’ experience in corporate finance assignments, identifying, structuring and managing investments as well as purchasing and managing private equity, specialist listed and AIM portfolios. He qualified as a chartered accountant in 1985 and has held senior positions in Touche Ross & Co, 3i Corporate Finance and Strand Partners Limited, with numerous public and private company directorships. In October 1997, David set up Chelverton Asset Management Limited to provide the investment management for the investment trust now known as Chelverton Growth Trust PLC, and was responsible for launching, in May 1999, Small Companies Dividend Trust PLC.

Data provided by Morningstar.

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