Montanaro UK Income Fund STG Unhedged

UK Equity Income

Rated Fund 2016-2018. Small company specialist with focus on quality

Montanaro UK Income was highly commended in Money Observer's 2015 and 2016 fund awards. It was launched in 2006 by Charles Montanaro, whose business, Montanaro Asset Management, specialises in investment in smaller UK and European companies.Consequently, although this fund invests primarily in UK small and medium-sized companies, up to 20 per cent may be invested in Europe. The fund sits in the Investment Association's UK all companies sector and has a yield of 3.6 per cent, with income being paid quarterly.Montanaro describes his investment approach as 'conservative'; to show that interests are aligned with those of investors, he and his investment team have their own money in the fund.He is keen to stress that the investment ideas for the fund are generated internally � rather than through stockbrokers � and are researched in detail. Desktop research is supplemented with company and site visits 'to kick the tyres'.Montanaro says that a team approach is adopted and what they look for are well-managed, high-quality companies in growth markets. He adds that they are genuine long-term investors, which keeps turnover and transaction costs within the fund low. He points out that once they identify a suitable company, their ideal holding period is 'forever'. This is one reason why they do not always greet takeovers with as much enthusiasm as others.

Narrative and ratings content all as of 01 January 2018.

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Montanaro UK Income Fund STG Unhedged
Montanaro Asset Management Limited
Open Ended Investment Company
UK All Companies
0.35 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3 %
Not Benchmarked
Capital growth and income.
Holding %
Victrex PLC 3.94 %
Big Yellow Group PLC 3.49 %
Cineworld Group PLC 3.38 %
Marshalls PLC 3.04 %
Hilton Food Group PLC 2.98 %
Polypipe Group PLC 2.93 %
Diploma PLC 2.67 %
XP Power Ltd 2.63 %
4imprint Group PLC 2.63 %
Brewin Dolphin Holdings PLC 2.47 %
Region %
United Kingdom 90.60 %
Sector %
Industrials 20.72 %
Consumer Cyclical 18.32 %
Financial Services 14.28 %
Technology 13.39 %
Basic materials 10.43 %
Real Estate 7.85 %
Consumer Defensive 6.48 %
Montanaro Asset Management Limited
EC2R 8AR, London, United Kingdom
Legal Structure
Open Ended Investment Company


Charles Montanaro
Joined 12/18/2012

Charles Montanaro graduated with an honours degree in Anthropology from Durham University in 1976. He spent four years in industry before joining Merrill Lynch in 1980 as a private client broker in London. He joined Dean Witter Reynolds in 1984 and Drexel Burnham Lambert in 1987 as a Senior Vice President, where, in both cases, he was their top institutional broker in the UK, joining the high-yield bond department in 1989. In 1990, Charles joined MMG Patricof (now Apax Partners) as a Director of investment banking working with UK smaller companies. In August 1991, he founded Montanaro to specialise in analysing and investing in quoted European smaller companies on behalf of leading institutions. He has since launched and managed several funds totalling over €1 billion and established a strong track record. In addition, he has served on the Boards of two public smaller companies. He was appointed a Director of the Montanaro European Smaller Companies plc on 12 January 2012.

Data provided by Morningstar.

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