MI Chelverton UK Equity Income Fund
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The Fund
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.
A Brief Introduction
"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
Investment Team
David TaylorFund Manager
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.
Academic Qualifications
BA (Hons) Business Studies, University of KingstonTime at Chelverton
18 years
Industry Experience
37 years
David HornerFund Manager
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.
Academic Qualifications
BA (Hons) Economics, University of ReadingProfessional Qualifications
CA
Time at Chelverton
27 years
Industry Experience
39 years
Oliver KnottFund Manager
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.
Academic Qualifications
BA (Hons) PPE, University of EssexProfessional Qualifications
CFA
Time at Chelverton
4 years
Industry Experience
15 years
Monthly FactsheetAs at 30 June 2024FUND SIZE£276.4mFUND SIZE£276.4m
![Download](data:image/svg+xml,<svg width="74" height="82" viewBox="0 0 74 82" fill="none" xmlns="http://www.w3.org/2000/svg">%0A<path fill-rule="evenodd" clip-rule="evenodd" d="M43.9164 51.9123C43.9164 64.0393 34.0852 73.8705 21.9582 73.8705H0C0 73.8705 0 56.8564 0 51.9123C0 39.7852 9.83112 29.9541 21.9582 29.9541C34.0852 29.9541 43.9164 39.7852 43.9164 51.9123Z" fill="%23D3E3CC"/>%0A<rect x="12.4021" y="1" width="60.3807" height="80" rx="5" stroke="white" stroke-width="2"/>%0A<path d="M20.4553 38.0664L20.4553 24.1469" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<path d="M28.0217 38.0664L28.0217 12.6429" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<path d="M35.5881 38.0664L35.5881 24.1469" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<path d="M20.4817 51.1553H65.32" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<path d="M20.4817 60.2349H65.1234" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<path d="M20.4817 69.3145H42.9009" stroke="white" stroke-width="2" stroke-linecap="round"/>%0A<circle cx="53.149" cy="27.8734" r="10.5541" stroke="white" stroke-width="2"/>%0A<line x1="54.1492" y1="16.3193" x2="54.1492" y2="27.8736" stroke="white" stroke-width="2"/>%0A<line x1="64.7002" y1="28.8735" x2="53.146" y2="28.8402" stroke="white" stroke-width="2"/>%0A</svg>%0A)
The run up to the UK election dominated news flow in June and without any fresh commentary from the Bank of England on the direction of interest rates the UK market lacked impetus to make further headway. The Fund gave up some of the gains made in April and May.
Key positive contributors to fund performance came from a variety of sectors: XPS Pensions Group rose following full year results which showed good growth across the board and evidence of market share gains and included a healthy double-digit increase in the dividend. PayPoint (business and consumer payment transactions) gained following resilient full year results in a difficult trading environment. Severfield (structural steel) continued to move ahead on good full year results, modestly ahead of market expectations. N Brown (retail) rallied despite challenging market conditions as the company is showing signs of strategic progress. We are encouraged to see several forgotten smaller companies starting to perform well.
The main detractors from performance were Telecom Plus (bundled utility services), which had already performed strongly ahead of good full year results. Similarly, Keller (construction) saw profit taking following a period of strong share price performance reflecting a second strong trading update. Ashmore (emerging market fund manager) drifted lower reflecting further relative fund performance weakness.
We bought one new holding this month, Card Factory (retail), which following the resumption of a dividend payment offers an attractive combination of self-help and organic growth at a low valuation.
The new government’s sizeable majority should presage political stability and initial indications from the new administration suggest a pragmatic, moderately business friendly approach – no doubt recognising that engaging with the private sector will be necessary to fund their growth ambitions. We wait to see if they make good on their manifesto commitment to increase investment from domestic pension funds into UK markets which would be positive. In the meantime, despite the terrible summer weather dampening retail sales, we anticipate better news from the Bank of England on interest rates will allow the UK market to make further progress in the second half of the year.
Top holdings (%)
| 1ZIGUP | 3.5 |
| 2Telecom Plus | 3.2 |
| 3Chesnara | 3.2 |
| 4Bakkavor Group | 2.7 |
| 5Keller Group | 2.5 |
| 6PayPoint | 2.5 |
| 7Polar Capital Holdings | 2.4 |
| 8Severfield | 2.2 |
| 9Vesuvius | 2.2 |
| 10XPS Pensions Group | 2.1 |
| 11Dunelm | 1.8 |
| 12Phoenix Group | 1.7 |
| 13Mortgage Advice Bureau | 1.7 |
| 14Epwin Group | 1.7 |
| 15MONY Group | 1.6 |
| 16Sabre Insurance Group | 1.6 |
| 17TP ICAP | 1.6 |
| 18Rathbones | 1.6 |
| 19Bodycote | 1.5 |
| 20FDM | 1.5 |
Sector allocation (%)
| Financials | 26.5 | |
| Industrials | 24.8 | |
| Consumer Discretionary | 12.4 | |
| Cash | 8.2 | |
| Consumer Staples | 5.1 | |
| Communication Services | 4.2 | |
| Materials | 4.2 | |
| Utilities | 4.1 | |
| Information Technology | 4.1 | |
| Energy | 3.4 | |
| Real Estate | 2.9 |
Geographic allocation (%)
| UK | 91.8 | |
| Cash | 8.2 |
Market cap allocation (%)
PerformanceChoose share class
Performance since launch of share class (%)
Performance summary (%)
Literature
Fund Facts
Key facts
| 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 |
Fund objective
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 and liquidity
| Dealing line | 0345 305 4217 |
| Administrator email | Contact |
| 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 |
Legal and regulatory
- AdministratorApex Fundrock Ltd
- CustodianThe Northern Trust Company, London Branch
- DepositoryNorthern Trust Investor Services Limited
- Fund umbrellaMI Chelverton Equity Fund
- Management companyApex Fundrock Ltd
- UK ACDApex Fundrock Ltd
- Investment adviserChelverton Asset Management Limited
- Accounting year end31 December
Related funds
MI Chelverton UK Equity Growth Fund
MI Chelverton European Select Fund
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