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At a glance
Index
FTSE-A All Share
Launch date
Sep 1985
Fund size
£1,173.4m
Fund currency
GBP
OEICs
Fund Managers
Leigh Harrison
Richard Colwell
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UK Equity Income Fund
Threadneedle UK Equity Income Fund is co-managed by Leigh Harrison and Richard Colwell and illustrates their distinctive approach to constructing an equity income portfolio. It is a more diversified offering than the UK Equity Alpha Income Fund which Leigh and Richard also co-manage and is our core UK equity income fund. Discover more about the fund by viewing the tabs below:
Graph as at 12 noon: 31st March 2012
- The Fund is relatively more diversified compared with the UK Equity Alpha Income Fund and typically holds 50 to 65 companies across a broad spread of industries.
- The investment team focuses on yield at the portfolio level, not the stock level. This means that the fund is not limited to traditional income sectors: the portfolio combines high yielding investments with growth opportunities and recovery situations.
- In pursuit of strong performance, the Fund has flexibility in terms of size and sector. This means that it can choose to exploit opportunities wherever they appear in the market.
- A source of income: with interest rates at all-time lows and gilt yields well below their long-term average, dividends from UK equities are increasingly being seen as an attractive way of generating investment income. Income can be paid out or re-invested twice a year.
- Long-term growth: unlike bonds, shares in well-managed companies should deliver growth of both capital and income over the long term.
- Comprehensive UK equity income range - the Fund is part of a UK equity range that offers options from large-cap holdings to equity income and specialist funds.
- Well resourced investment team - Threadneedle's UK equity team consists of 11 portfolio managers who operate within Threadneedle's wider team of more than 120 investment professionals.
- Co-managed by Leigh Harrison and Richard Colwell - both are Citywire* 'A' rated managers and the Fund is 'A' rated by OBSR.
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| Co-Fund managers | Leigh Harrison and Richard Colwell |
| Launch Date | September 1985 |
| Index | FTSE All Share |
| IMA Sector | UK Equity Income |
| Annual management charge | 1.50% |
| Minimum investment | Initial: £2,000 Subsequent: £1,000 |
| Fund codes | |
| ISIN | GB0001448900 |
| Sedol | 144890 |
| MEDIX | ESHII |
Top-down analysis
A clear understanding of the macroeconomic and thematic background is a vital starting point for building the portfolio. Fund manager Leigh Harrison is a key participant in the monthly asset allocation meetings that shape Threadneedle's investment views. This includes analysis on:
1. Economic Background - where we formulate our forecasts for growth, inflation, interest rates, bond yields and currencies.
2. Investment Themes - where we assess global sector research and seek to identify developing themes that we believe will affect markets. Harrison regularly chairs this meeting.
3. Regional Strategy - drawing together economic, thematic and company research, the final meeting sets our balanced fund allocation model geographically and between asset classes. These meetings are a rich source of debate and idea generation. Outside the monthly framework of in-house meetings, Leigh attends a wide variety of other formal discussions on a weekly and daily basis and has also encouraged a culture of open-minded communication within the team. Selective external analysis provides further material for the thought process, resulting in a set of economic forecasts and key themes that drive portfolio.
Bottom-up research
Companies are then selected in light of this top-down research. Meeting companies is at the core of the process, with the team seeing more than 250 companies in a typical year. Stock ideas are then shared and their merits debated within the UK equity team and in their regular meetings. The debate that determines whether a stock is included within the portfolio typically focuses on questions such as:
- Is the business model robust?
- Does the financial model add shareholder value?
- Is the management team credible?
- What is the company worth, and why?
- What is the scope for dividend progression?
- Is there potential to improve returns via restructuring?
- Leigh Harrison
Leigh Harrison is Threadneedle's Head of Equities and has overall responsibility for the management and performance of the company's equity products. He is the co-manager of the Threadneedle UK Equity Alpha Income Fund and the Threadneedle UK Equity Income Fund.
Prior to joining Threadneedle, Leigh was a director and senior portfolio manager for UK equities at Credit Suisse Asset Management, where he built an outstanding reputation for UK equity income products.
He has also held the positions of associate director at Rowan Dartington and director at Hill Samuel Investment Management, where he focused on UK smaller company funds.
Leigh holds a BA (Hons) from Nottingham University and an MSc from University College, London. He is also a Member of the Securities Institute. - Richard Colwell
Fund Profile
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Fund Factsheet
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UK Equity Range Brochure
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ISA Transfer Pack
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ISA Application Form
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