CT UK EQUITY INCOME Z GBP

Investment Process

The fund’s investment universe is over 1,200 stocks across the FTSE All-Share Index and smaller companies on AIM. The stocks are analysed against several qualitative and quantitative criteria. This includes strong company management, a robust business model for generating profit and a strong balance sheet and cash flow generation. Other factors include an attractive valuation compared to the company’s peers and history and a high and stable or growing dividend. Colwell also looks for companies with the potential to improve in any of these areas. The fund does not use any yield screens or have a yield hurdle for a stock to be considered. The team uses a portfolio manager-analyst model whereby all members have analyst coverage over at least one sector. As part of the selection process Colwell and his team carry out over 800 company meetings a year. Topics covered at these meetings typically range from a management team’s track record, to its strategy, capital allocation over time, and Environmental, Social and Governance issues.