Threadneedle UK Equity Income Fund Z Income GBP

UK Equity Income

Rated Fund 2013-19. A strong choice for income and growth

Threadneedle UK Equity Income represents a strong choice for investors seeking a balanced approach to achieving both income and growth.

Although income is a primary aim of the fund, it is managed for total return – a combination of income and growth. ­

This means the portfolio’s investments are likely to be a combination of higher-yielding shares and those offering capital growth opportunities, which jointly provide an overall yield of just under 4%. Income is paid quarterly.

Richard Colwell, head of UK equities at Columbia ­Threadneedle, has managed the fund since 2015, having previously been co-manager since 2010.

Colwell’s approach is to run a focused fund of 40-50 UK-listed companies (46 at present) targeting “hidden gems” – unloved stocks or businesses that have been overlooked or fallen out of favour – that he believes can deliver rising dividends or growth.

His holdings tend to fall into two broad categories: cashflow compounders with a consistently high return on equity and more contrarian or recovery ideas where established companies are experiencing short-term difficulties.

He describes the fund as “plain vanilla” because, unlike some of its competitors, it neither invests outside the UK nor uses bonds or derivatives.

Colwell works as part of a wider UK equity team, and he says investment ideas are exchanged and discussed within the team. Company research and picking the right shares is at the core of his investment approach, but he is also influenced by the fund group’s general economic and thematic views.

Once stocks have been purchased, as a contrarian, he is prepared to be patient and take a long-term approach to allow his holdings to achieve their potential.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Threadneedle UK Equity Income Fund Z Income GBP
Manager
Threadneedle Investment Services Ltd
Type
Open Ended Investment Company
ISIN
GB00B8169Q14
Sector
UK Equity Income
Launched
01/10/2012
OCF
0.83 %
Risk Rating
4
3 Year Sharpe
0.50
3 Year Alpha
-0.78
Yield
4.1 %
Benchmark
FTSE AllSh TR GBP
To provide income combined with prospects for capital growth over the long term. It looks to provide an income yield higher than the FTSE All-Share Index over rolling 3-year periods, after the deduction of charges. It invests at least 90% of its assets in the shares of companies listed on the London Stock Exchange; predominantly companies domiciled in the UK, or which have significant UK business operations. It may also invest in other securities (including fixed interest securities), collective investment schemes, money market instruments, deposits, cash and near cash.
Holding %
AstraZeneca PLC 8.48 %
GlaxoSmithKline PLC 5.90 %
Electrocomponents PLC 4.65 %
Rentokil Initial PLC 4.11 %
RSA Insurance Group PLC 4.02 %
Unilever PLC 3.91 %
Royal Dutch Shell PLC B 3.89 %
Morrison (Wm) Supermarkets PLC 3.72 %
Phoenix Group Holdings PLC 3.69 %
3i Ord 3.64 %
Region %
United Kingdom 98.24 %
Sector %
Industrials 25.53 %
Consumer Cyclical 17.01 %
Consumer Defensive 15.89 %
Healthcare 15.17 %
Financial Services 12.54 %
Name
Threadneedle Investment Services Ltd
Address
EC4N 6AG, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Richard Colwell
Joined 09/01/2010

Richard Colwell is a portfolio manager and Head of UK Equities at Columbia Threadneedle. He manages the Threadneedle UK Growth & Income Fund, Threadneedle UK Equity Income Fund and the Threadneedle UK Equity Alpha Income Fund. He also co-manages the Threadneedle Monthly Extra Income Fund and has research responsibility across all sectors. Before joining the company, Richard ran high alpha UK equity portfolios at Aviva Investors. He has also held portfolio management roles at Credit Suisse and Schroders and worked at the Bank of England. Richard has a degree in Banking, Insurance & Finance from the University of Bangor. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of the UK as well as the Chartered Institute of Bankers.

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.