Royal London UK Equity Income M
UK Equity Income
Rated Fund 2017-2018. Offers mix of large and small companies
UK equity income fund veteran Martin Cholwill has led this fund well since 2005, seeing it experience strong asset growth. It is a solid long-term performer with a yield of 3.8 per cent, paying a quarterly income.Cholwill can invest in companies of any size and has a 40/60 split at present between large companies and medium/small companies � which is a larger allocation to the latter than many of his peers. He favours a high-conviction approach and normally holds between 40 and 60 stocks. The fund invests across a broad spectrum of industries in which Cholwill is able to identify value, in particular focusing on companies with attractive cash flow characteristics to identify those companies that can consistently support a growing and sustainable dividend and avoid those that are the casualties of 'creative accounting'.As he points out, it is cash flow that pays the dividend, funds investment for future growth and helps provide resilience in a range of market conditions. He often identifies sources of dividend growth outside the well-known names within the FTSE 100 index. Macroeconomic factors are taken into account when considering company prospects. However, Cholwill says it is stock selection, based on thorough company research including meeting management teams, which is the main driver of the fund's performance. This involves seeking out companies with strong business models and sound finances, yet whose shares are sufficiently out of favour so that they can be purchased on a dividend yield premium.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Royal Dutch Shell PLC B||5.24 %|
|HSBC Holdings PLC||4.76 %|
|AstraZeneca PLC||4.38 %|
|BP PLC||4.03 %|
|GlaxoSmithKline PLC||3.53 %|
|Hargreaves Lansdown PLC||2.75 %|
|BBA Aviation PLC||2.72 %|
|Aviva PLC||2.70 %|
|Rio Tinto PLC||2.60 %|
|IG Group Holdings PLC||2.31 %|
|United Kingdom||100.00 %|
|Financial Services||23.64 %|
|Consumer Cyclical||17.43 %|
|Basic materials||6.14 %|
|Real Estate||5.11 %|
He became a Fund Manager in 1983 and joined AXA’s UK Equities team as an analyst. During the 21 years that Martin worked for AXA he managed a variety of UK equity portfolios. Finally as a specialist UK equity income Manager he took over management of AXA’s UK Equity Income Fund in 1996. Martin joined RLAM and took over management of the Royal London Equity Income Trust in March 2005.
Data provided by Morningstar.
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