Royal London UK Equity Income M Acc

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Trading AccountISAJISASIPP

Fund Info

  • Yield History2.71%
  • 3 Year sharpe0.17
  • 3 Year alpha-0.43
  • Distribution Typeaccumulation
  • BenchmarkFTSE AllSh TR GBP
  • Legal StructureOpen Ended Investment Company
  • Fund Size (month end)Open Ended Investment Company
  • OCF0.72%
  • IA SectorUK Equity Income
  • Manager GroupRoyal London
  • DomicileUnited Kingdom
  • ISINGB00B8Y4ZB91

Investment Strategy

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

ii Super 60 selected

This Fund is a member of our ii Super 60 rated list

UK equity income fund veteran Martin Cholwill has managed this fund since 2005.

Cholwill favours a concentrated portfolio of 40 and 60 stocks, 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 centered on some big FTSE 100 dividend stocks to keep the income up.

The fund invests across a broad spectrum of industries where Cholwill sees value, in particular focusing on companies with attractive cashflow characteristics that are able to support a growing and sustainable dividend. As he points out, it is cashflow that pays the dividend, funds investment for future growth and helps provide resilience in a range of market conditions.

Macroeconomic factors are considered when assessing company prospects. The fund is underpinned by cautious economic growth assumptions, and its focus on strong market positions, cashflow-backed dividends and robust balance sheets should deliver durability in a range of possible economic outcomes. But Cholwill says it is stock selection based on thorough company research, including meeting management teams, that is the main driver of his performance.

The fund pays income quarterly and currently has a yield of just under 5%.

Please note: As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out. This means the income that is likely to be achieved by funds and trusts in the near future may be far less than the historic yield quoted in the portfolios.

September 2020

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