UK equity income fund that concentrates on the relatively inefficient and under-researched smaller companies segment by selecting listed equities which offer a high yield today, and can grow their dividends through time. Whilst small and mid-cap managers traditionally focus on high growth, this fund is more value orientated and offers both a diversified income stream away from larger companies and more capital growth potential.
"Our focus on small and mid-cap dividend paying companies enables us to generate a high income for investors whilst harnessing the significant long-term capital performance potential."
David TaylorPortfolio Manager
Aims to deliver a high income and capital growth by investing in UK small and mid-cap companies
Combines the disciplines of equity income investing with the pricing inefficiencies of smaller companies
Team of three experienced fund managers, two of whom have been investing in UK small and mid-cap companies for over 30 years
David Taylor joined Chelverton in 2006 . He began his career as an analyst in the research department at Wedd Durlacher and moved into fund management in 1987 with the Merchant Navy Officers Pension Fund.
He joined Gartmore Investment Limited in 1991, during this time, he ran a combination of institutional funds and investment trusts, namely the Clydesdale Investment Trust and London & Strathclyde Trust. In 1995, he moved to LGT to manage small cap retail funds and latterly spent nearly seven years as head of UK smaller companies at HSBC Asset Management.
18 years
37 years
David Horner founded Chelverton in 1997 and in May 1999, launched the Small Companies Dividend Trust, which he still manages.
He qualified as a chartered accountant in 1984 with Touche Ross & Co before joining 3i Corporate Finance Limited in 1986 where he was a manager giving corporate finance advice. In May 1993 he joined Strand Partners Limited, and was appointed a director in January 1994, where he carried out a range of corporate finance assignments identifying, structuring and managing investments in quoted and unquoted companies.
CA
27 years
39 years
Oliver Knott joined Chelverton Asset Management in January 2020 as an Assistant Fund Manager. He has extensive experience in UK small and mid cap equities having joined Brewin Dolphin as a generalist salesman after graduating from the University of Essex with a 1st class honours degree in Politics, Philosophy and Economics.Prior to joining Chelverton, he worked as an equity analyst for N+1 Singer, in their highly respected technology research franchise. Oliver is a CFA Charterholder.
CFA
4 years
14 years
Although domestic interest rates were unmoved in March the consensus amongst almost all commentators is that longer term rates are set to be meaningfully lower than current levels. The timing of the first cuts remains the issue. At home inflation remains the main barrier to this first rate cut as data has proved to be relatively volatile on a month-by-month basis. Despite continued ‘top down’ UK gloom the busy corporate results season has just ended with a good cross section of our companies reporting results at least in line with expectations. We are not yet at the stage where analysts are looking forward to next years numbers which should start to trend upwards and instead there is a feeling of ‘more of the same’ for the rest of this year. When investors are able to ‘look through’ to a pick-up in earnings however we believe it will be reflected very quickly in small and mid-cap share prices from current valuations that we generally believe to be oversold and with substantial scope for recovery. This is important as it should hopefully relieve some of the pressure on UK fund flows which remain a headwind to us.
Amongst our top contributors to performance last month was Keller. Turnover and cash flows were ahead of expectations to such a degree that the Board has decided to rebase the ordinary dividend upwards by approximately 20%. We believe that this is a more powerful reflection of the underlying strength of cash generation in the business than an occasional ‘special’ dividend as it suggests it is sustainable. As an aside we would prefer more companies to do this rather than pay ‘specials’ which in our opinion are never really reflected in higher valuations as they are soon forgotten about. TP ICAP was strong after reassuring numbers and a raft of analyst notes highlighted the potential value of its subsidiary Parameta Solutions which provides licenses for data to the global OTC derivatives market. ITV surprised on the upside by selling its 50% stake in Britbox to the BBC for £235m all of which will go into share buybacks. On the downside there were earnings downgrades in Vanquis and FDM and Marshalls price suffered as investors took a longer-term view on their recovery prospects. We took some profits in our holding in Tatton Asset Management and sold some Crest Nicholson and added to our positions in Wickes, Inchcape and Morgan Advanced Materials. We also bought more Midwich, a relatively recent addition to our portfolio, which is a specialist AV distributor to the trade market and which operates globally.
1Keller Group | 3.4 |
2Chesnara | 3.2 |
3Redde Northgate | 3.0 |
4Telecom Plus | 2.7 |
5Vesuvius | 2.6 |
6XPS Pensions Group | 2.5 |
7Bakkavor Group | 2.2 |
8Mortgage Advice Bureau | 2.2 |
9Dunelm | 2.0 |
10TP ICAP | 1.9 |
11Moneysupermarket.com | 1.9 |
12Polar Capital Holdings | 1.8 |
13Sabre Insurance Group | 1.8 |
14PayPoint | 1.8 |
15STV Group | 1.8 |
16Severfield | 1.7 |
17Conduit Re | 1.7 |
18Wickes | 1.7 |
19Bodycote | 1.7 |
20Rathbones | 1.7 |
Financials | 30.3 | |
Industrials | 27.5 | |
Consumer Discretionary | 10.6 | |
Consumer Staples | 5.0 | |
Communication Services | 4.8 | |
Real Estate | 4.4 | |
Utilities | 3.9 | |
Information Technology | 3.8 | |
Materials | 3.5 | |
Cash | 3.2 | |
Energy | 3.0 | |
Cash | 3.2 |
UK | 96.8 | |
Cash | 3.2 |
Benchmark | N/A |
IA Sector | IA UK Equity Income |
Morningstar category | EAA Fund UK Equity Income |
Launch date | 04 December 2006 |
Fund type | UK Domiciled OEIC |
Base currency | GBP |
Dividend frequency | Quarterly |
Country of registration | UK |
The objective of the Fund is to provide a progressive income stream and achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities. The Fund will invest in UK companies which aim to provide a high initial dividend, progressive dividend payments and long term capital appreciation.
Dealing line | 0345 305 4217 |
Administrator email | |
Dealing fax | 0845 280 0188 |
Dealing frequency | Daily |
Price frequency | Daily |
Settlement terms | T+3 |
Dealing cut-off time | 12 noon (UK Time) |
Valuation point | 12 Noon, Daily |
Regular savings | Yes |
ISA eligible | Yes |
SIPP eligible | Yes |
EMX dealing codes | CHEVTN |
Calastone dealing | Yes |
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