Royal London UK Equity Income A

Multicap UK fund targeting income with some capital growth.

  • 603.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 4.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.25%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.30%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 5.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 18 September 2020

The fund seeks to achieve a combination of income and some capital growth. This pure equity income fund invests solely in high yielding UK stocks, with a particular emphasis on companies generating significant free cashflow to fund sustainable dividend payments.

Fund summary

Sector UK Equity Income
Structure OEIC
Launched April, 1984
Size £1,779m
Yield 5.00%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 30 Oct

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.30%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

Manager research

Average monthly relative returns

  • 15/16 0.29%
  • 16/17 -0.32%
  • 17/18 0.09%
  • 18/19 -0.03%
  • 19/20 -0.30%

Bestinvest MRI

  • 3 years -0.08%
  • 5 years -0.05%
  • Career 0.15%
  • 3 years 42.10%
  • 5 years 49.20%
  • Career 99.80%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Martin Cholwill

Cholwill graduated from Durham University with an Upper Second Honours Degree in Mathematics before beginning his career as an Actuarial Trainee with AXA Equity & Law in 1981. In 1983 he joined AXA as an analyst, becoming a fund manager in 1991, Deputy Product Champion - Group & Individual Pensions UK Equities since 1998 and later a Senior Investment Manager with the UK Equities Desk. In November 2004 it was announced that he had been made redundant from Axa; he joined Royal London in early 2005 to manage its UK Equity Income fund.

Track record

Martin Cholwill has 23.4 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.15%. During the worst period of relative performance (from August 1998 - February 2000) there was a decline of 20% relative to the index. The worst absolute loss has been 41%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -41.00% (May 2007 - March 2009)
Relative -20.00% (August 1998 - February 2000)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 July 2020

7.179% Astrazeneca Plc
5.1581% Glaxosmithkline
3.968% British American Tobacco
3.7978% Rio Tinto
3.6597% Royal Dutch Shell Plc
3.3268% Dunelm Group Plc
3.2652% Ig Group Hldgs
3.0702% Bp
2.8417% Pennon Group
2.7693% Imi Co
Source: Trustnet

Sector breakdown

Financials 24.00%
Industrials 21.00%
Consumer Services 13.00%
Health Care 12.00%
Utilities 8.00%
Consumer Goods 7.00%
Oil & Gas 7.00%
Basic Materials 6.00%
Telecommunications 1.00%

Key Investor Information

Download