Threadneedle UK Equity Income Fund Z Income GBP

UK Equity Income

Rated Fund 2013-2018. A strong choice for income and growth

Threadneedle UK Equity Income represents a strong choice for investors seeking a balanced approach to 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. Rather than investing in individual shares with a specific yield, this means that 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 around 4 per cent. Income is paid quarterly.

Richard Colwell, head of UK equities at Columbia Threadneedle, has run the fund since 2015, having previously been co-manager since 2010. Colwell's approach is to run a focused fund of about 50 UK-listed companies, targeting 'hidden gems' — unloved stocks or business that have been overlooked or fallen out of favour — that he believes can deliver rising dividends or growth.He describes the fund as 'plain vanilla' because, unlike some competitors, it neither invests outside the UK nor uses other assets such as bonds or derivatives to boost income.Colwell works as part of a wider UK equity team and says that investment ideas are exchanged and discussed within the team. Company research and picking the right shares is at the core of his 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 reach their potential.

Narrative and ratings content all as of 01 January 2018.

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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
0.82 %
Risk Rating
3
3 Year Sharpe
0.98
3 Year Alpha
1.38
Yield
3.8 %
Benchmark
FTSE AllSh TR GBP
The fund seeks to achieve an above average rate of income combined with sound prospects for capital growth. The ACD’s investment policy is to invest the assets of the Fund primarily in UK equities. It may, however, invest in other securities such as convertibles and gilts.
Holding %
AstraZeneca PLC 6.85 %
GlaxoSmithKline PLC 5.50 %
Electrocomponents PLC 4.58 %
Morrison (Wm) Supermarkets PLC 4.52 %
Imperial Brands PLC 4.24 %
Royal Dutch Shell PLC B 4.01 %
RSA Insurance Group PLC 3.44 %
Unilever PLC 3.34 %
Rentokil Initial PLC 3.26 %
3i Ord 3.19 %
Region %
United Kingdom 96.62 %
Sector %
Industrials 26.35 %
Consumer Cyclical 17.22 %
Consumer Defensive 16.16 %
Healthcare 12.90 %
Financial Services 11.88 %
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.

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