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Threadneedle UK Equity Income
Threadneedle UK Equity Income is a contrarian value fund managed by the highly experienced Richard Colwell, who looks for unloved companies with the ability to sustainably grow their dividends. Richard is a proper stock picker and will own what he likes and not simply what is popular. He will hold a combination of solid cash generative companies, and some recovery stocks to deliver income and capital growth for investors.
Our opinion
Richard is an extremely experienced manager and delivers something different with this value-orientated income fund. Threadneedle UK Equity Income fund has a patient, high conviction approach and Richard is not afraid to ignore areas of the market he doesn’t like, showing belief in his stock-picking skills.
Company description
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies, which are owned by the US financial services firm, Ameriprise Financial. Its focus is on equities and fixed income, but the company also manages cash and property assets. It has an international presence spanning 18 countries across the UK, Europe, US and Asia. Threadneedle was awarded the Elite Provider for Equities Rating in 2015 and 2016.
Fund manager
Richard Colwell has three decades of investment experience, having started his career at the Bank of England in 1990. In 1994 he joined Schroders, before moving to Credit Suisse and then Aviva. In 2010 he joined Threadneedle, where he also manages a number of other income portfolios, as well as being Head of UK Equities.
For us cash is king. We look for high returns and strong cash generation, which enable a company to fund its own growth and meet its own capital expenditure requirements.
Richard ColwellFund manager
Investment process
Richard believes in being patient and not over trading. He has a 'think active, act lazy' philosophy, aiming to have conviction with all his investments. He is not afraid to ignore whole parts of the market. Threadneedle UK Equity Income fund is managed for total return, not just yield. To achieve this, Richard owns high yielding investments alongside growth opportunities and is very focused on capital preservation. As such, he will avoid holding speculative stocks, as well as anything that is over reliant on macroeconomic events.
Risk
Although Threadneedle UK Equity Income fund is concentrated, the fund’s largest investments will be into strong, well-diversified businesses. Richard pays little attention to what his peers hold or his holdings relative to a benchmark and, as such, the fund can perform quite differently to these. Richard will manage the portfolio risk by having stocks from a diverse range of industries, with different drivers of performance.
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.