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.

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Name
Royal London UK Equity Income M
Manager
Royal London Unit Trust Managers Ltd
Type
Open Ended Investment Company
ISIN
GB00B3M9JJ78
Sector
UK Equity Income
Launched
08/11/2010
OCF
0.67 %
Risk Rating
3
3 Year Sharpe
1.00
3 Year Alpha
1.30
Yield
3.9 %
Benchmark
FTSE AllSh TR GBP
The investment objective and policy of the Fund is to achieve a combination of income and some capital growth by investing mainly in UK higher yielding and other equities, as well as convertible stocks. The Fund may hold transferable securities, (including Exchange Traded Funds which are closed ended funds, but not those which are collective investment schemes), government and public securities, deposits and cash (for the purposes of EPM and redemption of units). It may also hold derivatives for the purposes of EPM only
Holding %
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 %
Region %
United Kingdom 100.00 %
Sector %
Financial Services 23.64 %
Consumer Cyclical 17.43 %
Industrials 17.40 %
Energy 9.52 %
Healthcare 8.12 %
Basic materials 6.14 %
Real Estate 5.11 %
Name
Royal London Unit Trust Managers Ltd
Address
EC3V 0RL, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Martin Cholwill
Joined 03/01/2005

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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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.