Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Martin Cholwill's six top niche UK equity income ideas

Royal London Asset Management's UK equity income AAA-rated star reveals six of his best ideas beyond the mainstream.  

Martin Cholwill

Citywire AAA-rated Martin Cholwill has run the £954.7 million Royal London UK Equity Income fund since 2005. In three years the fund has returned 65.2%, compared ith a return of 36.3% for the FTSE 350, while in five years it has returned 180.5% compared with 112.2% for the index.

The fund invests solely in high yielding UK stocks, with an emphasis on sustainable dividends. Here he reveals six of his best ideas.

Martin Cholwill

Citywire AAA-rated Martin Cholwill has run the £954.7 million Royal London UK Equity Income fund since 2005. In three years the fund has returned 65.2%, compared ith a return of 36.3% for the FTSE 350, while in five years it has returned 180.5% compared with 112.2% for the index.

The fund invests solely in high yielding UK stocks, with an emphasis on sustainable dividends. Here he reveals six of his best ideas.

Ricardo

Environmental legislation for emissions is driving growth for this engineering consultancy. Many car companies now contract out a higher proportion of their R&D than before the credit crunch. Ricardo has a strong market position and has delivered real value to its clients.

Spirax Sarco

A company with a 15% global market share in products and services that optimise industrial steam processing. It is as large as its next four competitors combined, putting it in a very strong strategic position to sustain its record of delivering year-on-year dividend growth.

BBA Aviation

An aviation services company whose market is growing faster than GDP and will benefit as the US economy recovers. There is scope to bolster its market position through further acquisition.

Restaurant Group

An organic growth story with a strong roll-out programme of its restaurant formats, which is delivering a consistently high return on investment. Its strong balance sheet and consistent cashflow support sustainable dividend growth.

WH Smith

A story of strong cashflow and capital discipline, with organic growth in its travel business and strong cashflow from its mature high street operation. A recovery in airline travel could help provide a cyclical kicker to organic growth rates in its travel business.

Investec

An unloved business with a strong wealth management operation, whose shares are very cheap on a sum-of-parts basis. A strategic review may result in it selling the weaker parts of its banking operation, resulting in a bank with a high return on equity and realising value for shareholders.

Related Fund Managers

Martin Cholwill
Martin Cholwill
28/86 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 31.84%
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Thomas Miller explains its post-restructure plans

Profile: Thomas Miller explains its post-restructure plans

Thomas Miller Investment’s (TMI) head of wealth Matt Phillips has strong opinions about many things

Wealth Manager on Twitter