Royal London UK Equity Income M
UK Equity Income
Rated Fund 2017-20. Offers mix of large and small companies
UK equity income fund veteran Martin Cholwill has led this fund well since 2005 and experienced strong asset growth as a result - assets have broken through £2 billion. It is a solid long-term performer with a good yield of 4.2% and pays income quarterly. Cholwill favours a concentrated portfolio of 40 to 60 stocks (50 at present), which means each of his ideas contributes meaningfully to performance. He can invest in companies of any size but tends to have a bias towards medium-sized ones, albeit his top 10 holdings are centred on some big FTSE 100 dividend stocks to keep the income up.
"This fund invests more down the market capitalisation spectrum, so would be complementary to a core UK equity income fund, though there would be an element of overlap and it would be a bit riskier," says Adrian Lowcock, head of personal investing at Willis Owen, the investment platform. The fund invests across a broad spectrum of industries in which Cholwill sees value, in particular focusing on companies with attractive cash flow that are able to support a growing and sustainable dividend. 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.
The fund is underpinned by cautious economic growth assumptions, and its focus on strong market positions, cash flow-backed dividends and robust balance sheets should provide resilience in a range of possible economic outcomes. However, Cholwill says it is stock selection, based on thorough company research, including meeting management teams, that is the main driver of his performance.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Royal Dutch Shell PLC B||5.71 %|
|AstraZeneca PLC||4.77 %|
|GlaxoSmithKline PLC||4.47 %|
|BP PLC||4.11 %|
|HSBC Holdings PLC||3.42 %|
|Land Securities Group PLC||3.19 %|
|British American Tobacco PLC||2.69 %|
|Rio Tinto PLC||2.64 %|
|Close Brothers Group PLC||2.58 %|
|ITV PLC||2.46 %|
|United Kingdom||100.00 %|
|Financial Services||21.61 %|
|Communication Services||11.48 %|
|Consumer Cyclical||7.64 %|
|Basic materials||6.81 %|
|Consumer Defensive||5.12 %|
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.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.