Royal London UK Equity Income Class M Inc
Report And Accounts
Simplified Prospectus / KIID
Performance
Discrete performance - to last month end
| 30/11/19 to 30/11/20 |
30/11/20 to 30/11/21 |
30/11/21 to 30/11/22 |
30/11/22 to 30/11/23 |
30/11/23 to 30/11/24 |
|
|---|---|---|---|---|---|
| Fund | -15.3% | 21.2% | 7.9% | 4.0% | 15.5% |
| Sector | -10.5% | 17.1% | 3.5% | 1.5% | 15.4% |
| Rank | 56/68 | 17/68 | 22/70 | 15/70 | 37/70 |
| Quartile | 4 | 1 | 2 | 1 | 3 |
Annualised performance
| Annualised | ||||
|---|---|---|---|---|
| 3 Years to 30/11/24 |
5 Years to 30/11/24 |
10 Years to 30/11/24 |
||
| Fund | 9.1% | 5.9% | 6.6% | |
| Sector | 6.7% | 4.9% | 5.4% | |
| Rank | 21/70 | 20/68 | 12/58 | |
| Quartile | 2 | 2 | 1 | |
Top 10 Holdings
| Stock | % Weight |
|---|---|
| SHELL | 7.47 |
| ASTRAZENECA | 4.66 |
| RELX | 4.28 |
| UNILEVER | 4.16 |
| IMPERIAL BRANDS | 3.57 |
| BRITISH AMERICAN TOBACCO | 3.50 |
| GLENCORE | 2.71 |
| 3i Group Plc 3i Group Plc Ord GBP | 2.70 |
| BP | 2.65 |
| IMI | 2.63 |
| Total | 38.34 |
Fund Aims
The fund's investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in the shares of UK companies listed on the London Stock Exchange. The fund’s performance target is to outperform, after the deduction of charges, the FTSE All-Share Total Return GBP Index (the "Index") over rolling 3-year periods. The fund also aims to produce an income in excess of the Index's income over rolling 3-year periods. For further information on the fund's index, please refer to the Prospectus. The fund is actively managed.
Fund Manager
Joe currently manages a number of institutional mandates, having previously managed the CIS UK Growth Trust for over 10 years. Prior to that he managed the CIS UK Income with Growth Trust for over nine years, during which time it was awarded the best performing Fund in the UK Equity with Bond sector for the 5 years to December 1998. Joe has over 20 years of industry experience and previously held roles as an investment analyst covering a number of consumer sectors, such as general retail, beverages and tobacco, both at The Co-operative Asset Management and as a regional stockbroker. He qualified as an Associate Member of the Society of Investment Analysts in 1993 and is an ongoing Associate of the CFA, UK.
Richard Marwood joined RLAM in 2016, having worked at AXA Investment Managers for the preceding 19 years. He has run a wide range of UK Equity and multi-asset class portfolios, most notably AXA’s Distribution Fund franchise. Prior to working in The City Richard had an engineering background, having served an apprenticeship with British Aerospace. He holds a Mechanical Engineering Degree from Sheffield University and a PhD from Oxford University.
Fund Overview
| Mid (20/12/2024) | 857.40p |
| Historic yield | 4.12% |
| Fund size (31/10/2024) | £1126.20m |
| Number of holdings | 52 |
| Entry Charge | 0.00% |
| Ongoing Charges | 0.72% |
| Launch date | 05/11/2010 |
Asset Allocation
| UK Equities | 92.37% | |
| Property | 4.46% | |
| International Equities | 1.65% | |
| Cash and Equivalents | 1.51% | |
| Other Assets | 0.00% |
Commentary
During August, the fund was behind the FTSE All-Share index and competitor funds. Positive contributors to performance included WH Smith, Dunelm, Paragon and Signature Aviation. Dunelm has continued to trade strongly in recent months against a background of resilient demand for homewares and the company growing its market share. Detractors included Hargreaves Lansdown and Brewin Dolphin. We thought the trading update from Hargreaves Lansdown earlier in the month was encouraging, with the company continuing to gain market share. We sold out of the fund’s holding in Cineworld during the month. The COVID-driven shutdown of its business worldwide has seriously weakened its balance sheet and any potential equity raise is complicated by the family shareholder structure. Social distancing, face masks and studios delaying new film releases are all unhelpful. The shares are now stub equity and could recover, but dividend payments currently look a distant prospect. We added to the fund’s positions in British American Tobacco and WH Smith, taking advantage of share price weakness. WH Smith is managing its cash burn well, cutting costs and will be a survivor. It may well also benefit longer term from a number of competitors falling by the wayside.
This is not a recommendation or solicitation to buy or sell any particular security. The views and opinions expressed herein are those of the manager at the time and are subject to change without notice.
Important Information
Source of portfolio data: Broadridge. Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of ongoing charges, but take no account of product charges. Ongoing charges may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Asset Allocation
| UK Equities | 92.37% | |
| Property | 4.46% | |
| International Equities | 1.65% | |
| Cash and Equivalents | 1.51% | |
| Other Assets | 0.00% |
Equity Sector Breakdown
| Industry | Supersector | Sector | Subsector | ||
|---|---|---|---|---|---|
| Financials | 20.99% | - | - | - | |
| Financial Services | - | 9.72% | - | - | |
| Investment Banking & Brokerage Services | - | - | 7.34% | - | |
| Asset Managers & Custodians | - | - | - | 5.76% | |
| Investment Services | - | - | - | 1.59% | |
| Finance & Credit Services | - | - | 2.38% | - | |
| Consumer Lending | - | - | - | 2.38% | |
| Insurance | - | 6.31% | - | - | |
| Life Insurance | - | - | 6.31% | - | |
| Life Insurance | - | - | - | 6.31% | |
| Banks | - | 4.95% | - | - | |
| Banks | - | - | 4.95% | - | |
| Banks | - | - | - | 4.95% | |
| Industrials | 13.94% | - | - | - | |
| Industrial Goods & Services | - | 12.07% | - | - | |
| Electronic & Electrical Equipment | - | - | 4.71% | - | |
| Electronic Equipment: Control & Filter | - | - | - | 2.63% | |
| Electrical Components | - | - | - | 2.07% | |
| Industrial Support Services | - | - | 2.52% | - | |
| Industrial Suppliers | - | - | - | 1.65% | |
| Forms & Bulk Printing Services | - | - | - | 0.87% | |
| General Industrials | - | - | 1.98% | - | |
| Diversified Industrials | - | - | - | 1.98% | |
| Industrial Transportation | - | - | 1.65% | - | |
| Marine Transportation | - | - | - | 1.65% | |
| Industrial Engineering | - | - | 1.20% | - | |
| Machinery: Industrial | - | - | - | 1.20% | |
| Construction & Materials | - | 1.87% | - | - | |
| Construction & Materials | - | - | 1.87% | - | |
| Engineering & Contracting Services | - | - | - | 0.96% | |
| Building Materials: Other | - | - | - | 0.92% | |
| Consumer Discretionary | 13.72% | - | - | - | |
| Media | - | 8.67% | - | - | |
| Media | - | - | 8.67% | - | |
| Publishing | - | - | - | 4.28% | |
| Media Agencies | - | - | - | 2.51% | |
| Radio & TV Broadcasters | - | - | - | 1.89% | |
| Retail | - | 2.97% | - | - | |
| Retailers | - | - | 2.97% | - | |
| Home Improvement Retailers | - | - | - | 1.89% | |
| Specialty Retailers | - | - | - | 1.08% | |
| Consumer Products & Services | - | 2.07% | - | - | |
| Household Goods & Home Construction | - | - | 2.07% | - | |
| Home Construction | - | - | - | 2.07% | |
| Consumer Staples | 12.73% | - | - | - | |
| Food, Beverage & Tobacco | - | 7.99% | - | - | |
| Tobacco | - | - | 7.08% | - | |
| Tobacco | - | - | - | 7.08% | |
| Food Producers | - | - | 0.91% | - | |
| Food Products | - | - | - | 0.91% | |
| Personal Care, Drug & Grocery Stores | - | 4.74% | - | - | |
| Personal Care, Drug & Grocery Stores | - | - | 4.74% | - | |
| Personal Products | - | - | - | 4.16% | |
| Food Retailers & Wholesalers | - | - | - | 0.58% | |
| Energy | 10.12% | - | - | - | |
| Energy | - | 10.12% | - | - | |
| Non-Renewable Energy | - | - | 10.12% | - | |
| Integrated Oil & Gas | - | - | - | 10.12% | |
| Health Care | 9.23% | - | - | - | |
| Health Care | - | 9.23% | - | - | |
| Pharmaceuticals & Biotechnology | - | - | 9.23% | - | |
| Pharmaceuticals | - | - | - | 9.23% | |
| Basic Materials | 7.40% | - | - | - | |
| Basic Resources | - | 5.27% | - | - | |
| Industrial Metals & Mining | - | - | 5.27% | - | |
| General Mining | - | - | - | 5.27% | |
| Chemicals | - | 2.13% | - | - | |
| Chemicals | - | - | 2.13% | - | |
| Chemicals: Diversified | - | - | - | 2.13% | |
| Real Estate | 4.46% | - | - | - | |
| Real Estate | - | 4.46% | - | - | |
| Real Estate Investment Trusts | - | - | 4.46% | - | |
| Diversified REITs | - | - | - | 2.36% | |
| Industrial REITs | - | - | - | 1.58% | |
| Retail REITs | - | - | - | 0.52% | |
| Utilities | 4.42% | - | - | - | |
| Utilities | - | 4.42% | - | - | |
| Electricity | - | - | 2.25% | - | |
| Conventional Electricity | - | - | - | 2.25% | |
| Gas, Water & Multi-utilities | - | - | 2.17% | - | |
| Multi-Utilities | - | - | - | 2.17% | |
| Cash and Equivalents | 1.51% | - | - | - | |
| Technology | 1.48% | - | - | - | |
| Technology | - | 1.48% | - | - | |
| Software & Computer Services | - | - | 1.48% | - | |
| Software | - | - | - | 1.48% | |
| Non-Classified | 0.00% | - | - | - | |
Regional Allocation
| UK | 92.37% | |
| Property | 4.46% | |
| Developed Europe - Excl UK | 1.65% | |
| Cash and Equivalents | 1.51% |
Fixed Interest Currencies
| Non-Fixed Interest Assets | 99.33% | |
| Cash | 0.67% |
Regional Breakdown
| Region | Country | ||
|---|---|---|---|
| UK | 92.37% | - | |
United Kingdom
|
- | 92.37% | |
| Property | 4.46% | - | |
| Developed Europe - Excl UK | 1.65% | - | |
Ireland
|
- | 1.65% | |
| Cash and Equivalents | 1.51% | - | |
Breakdown By Market Cap (%)
| Mega |
|
33.56% |
| Large |
|
24.94% |
| Medium |
|
25.66% |
| Small |
|
2.23% |
| Micro |
|
2.65% |
| Non-Classified |
|
9.46% |
| Cash |
|
1.51% |
Top 10 Holdings
| Stock | % Weight | Sector | Country | |
|---|---|---|---|---|
| 1 | SHELL | 7.47% | Non-Renewable Energy | United Kingdom |
| 2 | ASTRAZENECA | 4.66% | Pharmaceuticals & Biotechnology | United Kingdom |
| 3 | RELX | 4.28% | Media | United Kingdom |
| 4 | UNILEVER | 4.16% | Personal Care, Drug & Grocery Stores | United Kingdom |
| 5 | IMPERIAL BRANDS | 3.57% | Tobacco | United Kingdom |
| 6 | BRITISH AMERICAN TOBACCO | 3.50% | Tobacco | United Kingdom |
| 7 | GLENCORE | 2.71% | Industrial Metals & Mining | United Kingdom |
| 8 | 3i Group Plc 3i Group Plc Ord GBP | 2.70% | Investment Banking & Brokerage Services | United Kingdom |
| 9 | BP | 2.65% | Non-Renewable Energy | United Kingdom |
| 10 | IMI | 2.63% | Electronic & Electrical Equipment | United Kingdom |
Dual Aspect Equity Analysis
| UK Equities | Int'l Equities | UK Bonds | Int'l Bonds | UK Gilts | Property | Other | Cash & Equiv | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Technology | 1.48% | - | - | - | - | - | - | - | 1.48% |
| Financials | 20.99% | - | - | - | - | - | - | - | 20.99% |
| Real Estate | - | - | - | - | - | 4.46% | - | - | 4.46% |
| Consumer Discretionary | 13.72% | - | - | - | - | - | - | - | 13.72% |
| Consumer Staples | 12.73% | - | - | - | - | - | - | - | 12.73% |
| Energy | 10.12% | - | - | - | - | - | - | - | 10.12% |
| Utilities | 4.42% | - | - | - | - | - | - | - | 4.42% |
| Health Care | 9.23% | - | - | - | - | - | - | - | 9.23% |
| Industrials | 12.29% | 1.65% | - | - | - | - | - | - | 13.94% |
| Basic Materials | 7.40% | - | - | - | - | - | - | - | 7.40% |
| Cash and Equivalents | - | - | - | - | - | - | - | 1.51% | 1.51% |
| Non-Classified | - | - | - | - | - | - | - | - | - |
Important Information
The Industry Classification Benchmark is a product of FTSE International Limited and has been licensed for use. This factsheet is for investment professionals and is for information purposes only.
Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Identification Codes
| Sedol Code | B3M9JJ7 |
| Mex Code | RLUEB |
| Isin Code | GB00B3M9JJ78 |
| Citi Code | LWG4 |
Fund Charges
| Entry Charge | 0.00% |
| Ongoing Charges | 0.72% |
Aims and Benchmark
| Aims | The fund's investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in the shares of UK companies listed on the London Stock Exchange. The fund’s performance target is to outperform, after the deduction of charges, the FTSE All-Share Total Return GBP Index (the "Index") over rolling 3-year periods. The fund also aims to produce an income in excess of the Index's income over rolling 3-year periods. For further information on the fund's index, please refer to the Prospectus. The fund is actively managed. |
| Benchmark | FTSE® All-Share |
| Benchmark Category | - |
| IA Sector | UK Equity Income |
Fund Background
| Valuation frequency | Daily |
| Valuation point | 12:00 |
| Fund type | OEIC |
| Launch price | £1.00 |
| Fund currency | Pound Sterling |
| Fund domicile | United Kingdom |
| ISA allowable | Yes |
| SIPP allowable | Yes |
Distribution Details
| Income frequency | Quarterly |
| Distribution Type | Dividend |
| Distribution Payment Basis | Net |
Distribution Dates
| Ex dividend date(s) | Income payment date(s) |
|---|---|
| 01 December | 31 January |
| 01 March | 30 April |
| 01 June | 31 July |
| 01 September | 31 October |
Effect of Deductions
| Assuming a growth rate of 6.00% | Assuming a growth rate of 7.00% |
|---|---|
| - | - |
Fund Administration
| Fund Trustee/Depository | HSBC Bank plc |
| Fund Administrator | HSBC Bank plc |
| Fund Registrar | DST Financial Services Europe |
| Fund Custodian | HSBC Bank plc |
Group Details
| Group name | Royal London Unit Trust Managers Limited |
| Group address | 55 Gracechurch Street London EC3V 0UF |
| Group telephone | 020 32725408 |
| Dealing telephone | 08456 04 04 04 |
| platforms@rlam.co.uk | |
| Homepage | www.rlam.co.uk |
| Fax number | - |
Dealing
| Minimum Investment | £100000 |
| Minimum Top Up | £1000 |
| Minimum Regular Saving | - |
| Settlement Period: Buy | 3 days |
| Settlement Period: Sell | 3 days |
| Pricing Basis | Forward |
| Dealing Decimals | 4 |
Important Information
Ongoing charges may vary in the future and may be higher than they are now.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Risk Analysis
| Ratio | Value |
|---|---|
| Alpha | 2.00 |
| Beta | 1.11 |
| Sharpe | 0.43 |
| Standard Deviation | 13.02 |
| Info Ratio | 0.85 |
Risk Factors
| Risk Factor | Yes / No |
|---|---|
| Charges to Capital | Yes |
| Emerging Markets | No |
| Concentrated Portfolio | No |
| Smaller Companies | Yes |
| High Yield Bonds | No |
| Sector Specific | No |
| Geared Investments | No |
| Value of Investments | Yes |
| Investments Long Term | Yes |
| Property | No |
| Exchange Rate | No |
| Higher Risk | No |
| Performance Charges | No |
| Derivative Exposure | No |
| Offshore | No |
| Income Eroding Capital Growth | Yes |
| Umbrella Liabilities | No |
| New Fund | No |
| Solvency of Depository | No |
| Solvency of Bond Issuers | No |
| Ethical Restrictions | No |
| Liquidity | No |
| Returns Are Not Guaranteed | Yes |
| Inflation | Yes |
| Taxation and Tax Relief | Yes |
Fund Specific Risks
Charges to Capital
Part, or all of the periodic annual management fee(s) and expenses may be charged to capital which could increase the potential for the capital value of your investment to be eroded. Your capital could also decrease if income withdrawals exceed the growth rate of the fund(s).
Smaller Companies
The fund invests in smaller companies. Smaller companies shares can be more volatile and less liquid than larger company shares, so smaller companies funds can carry more risk.
Value of Investments
The value of investments, and any income can fall, as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.
Investments Long Term
Investments should be regarded as long term and are not suitable for money which may be needed in the short term, you should always have a sufficient cash reserve.
Income Eroding Capital Growth
The fund focuses on providing an income, which can reduce the prospects for capital growth, and in some cases the capital value may fall.
Returns Are Not Guaranteed
What you receive when you sell your investment is not guaranteed; it depends on how your investments perform.
Inflation
Inflation will reduce the real value of your investments in future.
Taxation and Tax Relief
Levels of taxation and tax relief are subject to change.
Important Information
The risk factor definitions are provided by Broadridge. These definitions may differ from those of Prudential or any underlying fund manager. The data itself is provided by Prudential or the underlying fund manager.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
Important Information
Source of performance data: FE fundinfo. We can’t predict the future. Past performance isn’t a guide to future performance. The figures shown are intended only to demonstrate performance history of the fund, after allowing for the impact of ongoing charges, but take no account of product charges. Ongoing charges may vary in the future and may be higher than they are now. Fund performance is based upon the movement of the daily price and is shown as total return in GBP with income reinvested. The value of your client’s investment can go down as well as up and the amount your client gets back may be less than they put in.
This factsheet is for investment professionals and is for information purposes only. Should you wish to present any of this content to your client, please refer to similar pages on pru.co.uk. You should refer to your client’s policy documentation and supporting brochures for fund availability, investment strategy, any product information and charges. Every care has been taken in populating this output, however it must be appreciated that neither Broadridge, Prudential nor their sources guarantee the accuracy, adequacy or completeness of this information or make any warranties regarding results from its usage.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 15454. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.