UK Equity Income Fund

Fund Objective

The Fund's investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in the shares of UK medium-sized companies listed on the London Stock Exchange.The Fund’s performance target is to outperform the FTSE All-Share Index (the "Index") over rolling 3-year periods. The Fund also aims to produce an income in excess of the Index's income over rolling 3-year periods. For further information on the Fund's index, please refer to the Prospectus, available via the fund information section of this website.

Fund managers

The lead fund manager is Martin Cholwill, he is supported by senior fund manager Richard Marwood and fund manager Niko de Walden.

The Income team operates in a collegiate manner around its well established investment philosophy and process. Richard Marwood has been deputy on the fund since joining RLAM in 2016 and was previously a long standing colleague of Martin’s at AXA Investment Management. Niko de Walden has been working for Martin for over four years.

Martin Cholwill joined RLAM in March 2005. Before joining RLAM, Martin spent 21 years working for AXA Investment Managers where he managed a variety of UK equity portfolios, including the UK Equity Insurance Funds (1993 – 1994), the General Trust (1994 – 1998) and the UK Growth Trust (1991 – 1996), concluding as a specialist UK equity income manager when he took over management of AXA’s UK Equity Income Fund in 1996. Martin has a degree in Maths from Durham University.

Richard Marwood joined RLAM in 2016, having worked at AXA Investment Managers for the preceding 19 years. He has run a wide range of UK Equity and multi-asset class portfolios, most notably AXA’s Distribution Fund franchise. Prior to working in The City Richard had an engineering background, having served an apprenticeship with British Aerospace. He holds a Mechanical Engineering Degree from Sheffield University and a PhD from Oxford University.

Niko joined the RLAM UK Equity team in July 2014 and works closely with Richard and Martin Cholwill as part of the Income team. He was previously a graduate trainee at Henderson Global Investors, working principally in Performance Analysis. Niko has a BA Hons in Classics from Oxford University, and is a CFA charterholder.


Investment approach

The approach taken in managing this core equity income fund is to identify good companies with strong business models and sound finances that are able to deliver sustainable dividend growth. The manager has a preference for companies with robust balance sheets yet whose shares are sufficiently out of favour so that they can be purchased on a dividend yield premium.

This high conviction Fund invests across a broad spectrum of industries in which the manager is able to identify value, in particular focusing on companies with attractive cashflow characteristics. This is important when identifying those companies that can consistently support a growing and sustainable dividend as it is cashflow, not ‘cashless’ profits, that pays the dividend and Funds investment for future growth.

Stock selection, based on thorough company research including meeting management teams, is the main driver of performance for the Fund. Macro economic factors are taken into account when considering company prospects. Martin would normally expect to hold between 40-60 stocks within the Fund.

Product Risk Warning

Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market.