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Threadneedle UK Equity Income Inclusive - Class 1 - Income (GBP)

Sell:93.19p Buy:93.19p Change: 0.86p (0.93%)
Prices as at 24 June 2022
Change: 0.86p (0.93%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 24 June 2022
Change: 0.86p (0.93%)
Prices as at 24 June 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

Richard Colwell's an experienced equity income manager who's built a strong long-term track record. He's not afraid to invest differently from other managers by investing in unloved and overlooked companies. He takes a sensible approach, sticking to the basics and doing them really well. It's led to excellent long-term performance. We rate Colwell highly and expect the fund to keep performing well for the long-term, though there are no guarantees. This fund is on the Wealth Shortlist of funds chosen by our analysts for their long-term performance potential.

Our view on the sector

Equity income funds are popular with investors. Most aim to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested in the fund to boost long-term growth. Different fund managers take different approaches to income investing. Some focus on larger companies that are seen to be more stable and have paid regular dividends for many years. Others invest in higher-risk small and medium-sized companies. These might pay a lower income to start with, but have more growth potential. We think carefully chosen equity income funds can form the cornerstone of almost any portfolio.

Performance Analysis

Richard Colwell's managed the fund since October 2015 but has a track record going back further with previous funds. During his career he's beaten the broader UK stock market. Our analysis suggests he's added value with his stock picking. There have been times when he's not done as well though, most notably between 2016 and 2018. During this time the market rose rapidly. Colwell normally lags the market when this happens, but he usually fares better than the market when it's falling.

Investment Philosophy

The manager's a firm believer in the power of reinvested dividends. He thinks they're one of the main reasons investments grow over the long term. He also believes excellent results can be achieved investing in unloved companies that can turn themselves around. Part of his decision-making is based on what's going on in the wider economy, as he thinks that'll eventually trickle down to how companies perform.

Process and Portfolio Construction

Richard Colwell looks for companies he thinks will pay a high and growing income. He's supported by a strong team of analysts. Together they look under the bonnet of the companies and consider what impact economic affairs are likely to have on them.

Colwell particularly likes finding hidden gems that've been overlooked by other investors. Often these are companies that've temporarily fallen out of favour but he thinks have good long-term prospects.

The portfolio normally contains between 45 and 60 companies. Most of these are large, established companies which are usually among the most consistent and biggest dividend payers. But Colwell also invests more in mid-sized companies than the broader UK stock market. This gives the fund greater potential for long-term growth.

The fund takes its charges from capital which boosts the income, but reduces the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

  • Credit Suisse Growth & Income
  • IA UK All Companies
  • Aviva Investors UK Income &...
  • Threadneedle UK Growth & Income...
  • Threadneedle UK Equity Income...
  • IA UK Equity Income

Fund Track Record

24/06/17 to 24/06/18 24/06/18 to 24/06/19 24/06/19 to 24/06/20 24/06/20 to 24/06/21 24/06/21 to 24/06/22
Annual return 2.75% -4.27% -8.70% 24.80% -1.40%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Threadneedle was founded in 1994, created out of the investment operations of Allied Dunbar and Eagle Star. Its origins are in the UK insurance industry, but 1997 saw the launch of UK OEIC funds. Threadneedle is fully owned by Ameriprise Financial, which is listed on the NYSE. In 2008 Threadneedle entered the Asian market, with its first office opened in Hong Kong. Threadneedle continues to grow and expand into Asia, North America, Australia and the Middle East.

The ethos of Threadneedle is built upon teamwork as a means to deliver superior, repeatable outperformance. The investment process is based on working together to generate ideas and to test them; gaining insight from different asset classes and geographies to ensure a robust grounding, while allowing individual teams to use their skill and flair.

Information about the fund

Fund manager biography

manager photo
Manager Name: Richard Colwell
Manager start date: 30 September 2010
Manager located in: London

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 policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account