Royal London UK Equity Income Fund
Share classM Inc GBP
ISIN GB00B3M9JJ78
Fund objective
The Fund aims to provide a return greater than that of the FTSE® All-Share Total Return GBP Index (the "Index") over rolling 3-year periods, through a combination of capital growth and income, after the deduction of charges. In addition, the Fund also aims to produce an income greater than the Index's income over rolling 3-year periods. The Index has been selected as a target benchmark because it is representative of the type of companies in which the Fund invests, and it is therefore an appropriate measure for the Fund's performance. The performance comparator for the Fund is the IA UK Equity Income sector (the “IA Sector”).
Fund ratings
Fund awards
| Base currency | GBP |
|---|---|
| Fund launch | 11 Apr 1984 |
| ISA eligible | Yes |
| SRRI | 5 |
| Distribution frequency | Quarterly |
| Dividend yield | 4.06% |
| IA sector |
|---|
| IA UK Equity Income |
| Benchmark |
| FTSE All Share |
Performance
Data as at 31 Aug 2026
Royal London UK Equity Income Fund - M Inc GBP | 67.88% |
FTSE All Share | 69.81% |
IA UK Equity Income | 52.84% |
Past performance is not a guarantee or reliable indicator of future returns. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested.
Share class performance is based on mid-day prices, net of fees and gross of taxes, with gross income reinvested unless otherwise stated. Benchmark performance is priced at close of business, gross of fees and taxes. The impact of fees reduces your investments. Rolling performance data shown using month end returns. Quartile rank, where displayed, is the IA sector quartile rank for the M Inc GBP share class.
Cumulative
To 31 Aug 2026 | 1 month | 3 months | 6 months | 1 year | 3 years | 5 years | 10 years | Launch |
|---|---|---|---|---|---|---|---|---|
M Inc GBP | -0.45 | 6.39 | 4.60 | 18.79 | 56.86 | 67.88 | 117.38 | 337.98 |
Benchmark | 0.69 | 5.13 | 2.00 | 21.30 | 59.75 | 69.81 | 126.35 | 239.06 |
IA sector | 0.80 | 6.41 | 3.85 | 18.84 | 51.88 | 52.82 | 94.82 | - |
Quartile rank | 4 | 2 | 2 | 3 | 2 | 2 | - | - |
Annualised
3 years | 5 years | Launch |
|---|---|---|
16.17 | 10.91 | 9.78 |
16.88 | 11.16 | 8.02 |
14.95 | 8.85 | - |
2 | 2 | - |
Share class launched on 05 Nov 2010
Risk and return
Annualised| 3 years | 5 years | |
|---|---|---|
Alpha (%) | -0.21 | 0.05 |
Beta | 1.06 | 1.08 |
Tracking error (%) | 3.81 | 3.70 |
Information ratio | 0.11 | 0.15 |
Alpha
Measure of excess return of an investment relative to a benchmark index. It measures the performance of a stock or portfolio, relative to a benchmark. A positive alpha indicates outperformance, while a negative alpha suggests underperformance. In this context, alpha refers to Jensen’s Alpha, the industry‑standard risk‑adjusted measure of performance relative to expected returns given market risk.
Beta
It measures a stock's volatility relative to the market. A beta of 1 means the stock moves with the market, while a beta less than 1 is less volatile, and a beta greater than 1 is more volatile.
Tracking error
Tracking error indicates how closely a fund follows its benchmark index. It is a measure of the risk in the fund that is due to active management decisions made by the fund manager. It is calculated on an ex-post basis (actual basis, post period end).
Information ratio (IR)
It is a measure of risk-adjusted performance of a portfolio against a benchmark. It calculates the excess returns of a portfolio relative to the benchmark, adjusted for the volatility of those returns. A higher IR indicates more consistent excess returns.
Fund breakdowns
Top 10 holdings (%)
Shell Plc | 6.50 |
HSBC Holdings Plc | 6.14 |
AstraZeneca PLC | 3.54 |
Aviva plc | 3.40 |
RELX PLC | 3.39 |
Unilever PLC | 3.33 |
British American Tobacco p.l.c. | 2.97 |
Rio Tinto plc | 2.92 |
BP PLC | 2.83 |
Informa Plc | 2.76 |
Total number of holdings | 52 |
Sector breakdown (%)
| Fund | Benchmark | |
|---|---|---|
Financials | 28.73 | 30.30 |
Consumer Staples | 14.29 | 12.37 |
Basic Materials | 10.38 | 8.07 |
Energy | 9.56 | 9.37 |
Industrials | 8.64 | 12.71 |
Health Care | 8.20 | 10.47 |
Consumer Discretionary | 7.89 | 6.52 |
Real Estate | 4.97 | 2.09 |
Technology | 4.65 | 2.56 |
Other | 2.68 | 5.53 |
Fund characteristics
Dividend yield | 4.06% |
P/E ratio - last 12 months | 15.85 |
P/E ratio - forward 1 year | 11.77 |
P/CF ratio | 8.89 |
P/B ratio | 2.01 |
P/S ratio | 1.14 |
Dividend yield
The dividend yield reflects distributions declared over the past twelve months as a percentage of the mid-market price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions. Reported yields reflect RLAM’s current perception of market convention around timing of bond cash flows.
P/E ratio (Price-to-earnings ratio)
The P/E ratio is used to determine a company's share value and compare valuations. A high P/E ratio may indicate high market expectations for future growth, while a low P/E ratio may suggest lower expectations for future performance.
P/B ratio (Price-to-book ratio)
A valuation ratio calculated by dividing the market price per share of a company by its book value per share. A low P/B ratio may indicate that the company is undervalued, while a high P/B ratio may suggest that the company is overvalued.
P/CF ratio (Price-to-cash flow ratio)
It is used to determine the company's share value and to compare it to others or the market average. A low P/CF ratio may indicate that the company is undervalued, while a high P/CF ratio may suggest that the company is overvalued.
P/S ratio (Price-to-sales ratio)
A valuation ratio calculated by dividing a company's market capitalization by its total sales over the past 12 months. It is used to determine a company's share value and compare valuations. A low P/S ratio may indicate undervaluation, while a high P/S ratio may suggest overvaluation.
Monthly commentary
Data as at 31 Aug 2026
These views represent the opinions of the author(s) at the time of writing and do not constitute investment advice.
UK equities delivered modest gains in August against a backdrop of rising central bank interest rate expectations and US dollar weakness, reflecting broad concerns about the persistency of inflation and the US fiscal trajectory. The announcement from the US Treasury that it would increase repurchases of long-term government securities – in an attempt to stem rising borrowing costs – was taken as a negative signal for the US dollar and precious metals rallied as investors rotated into hard assets.
The fund underperformed the benchmark and the peer group over the month. Detractors included Imperial Brands following reports of a major cost-cutting programme in the US and Europe (despite this being very much part of the group strategy) and Prudential, which fell on reports that Chinese authorities have imposed tax levies on offshore Hong Kong insurance policies that have historically been an attractive source of growth. This was offset by strong share price performance from specialty chemicals group Croda on the back of improving earnings momentum, along with a strong recovery in software company Sage Group with easing concerns around the potential disruption from AI.
We continue to feel that our approach of investing in a broad range of companies from different sectors and stages of their lifecycle is very appropriate and will allow fund performance to continue to be driven by the success of our hunting for undervalued long-term cashflows.
Fund managers
Richard Marwood
Head of UK and European Equities
Max Newman
Fund Manager
Fund literature
Codes and fees
Share class | ISIN | SEDOL | Launch date | Fee | Min investment |
|---|---|---|---|---|---|
M Inc GBP | GB00B3M9JJ78 | B3M9JJ7 | 05/11/2010 | 0.720% | £100,000 |
M Acc GBP | GB00B8Y4ZB91 | B8Y4ZB9 | 26/11/2012 | 0.720% | £100,000 |
A Inc GBP | GB00B67N8655 | B67N865 | 11/04/1984 | 1.030% | £1,000 |
S Acc GBP | GB00BJ7JMK69 | BJ7JMK6 | 23/04/2019 | 0.090% | £0 |
Z Inc GBP | GB00BG48LT79 | BG48LT7 | 02/12/2013 | 0.640% | £15,000,000 |
Z Acc GBP | GB00BJ9MHJ70 | BJ9MHJ7 | 31/07/2019 | 0.640% | £15,000,000 |
Contact us
For intermediaries
Email: bdsupport@rlam.com
For enquiries: 020 3272 5950
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Royal London Asset Management's approach provides a diverse way to meet a number of investor objectives.
Risks
Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested.
Charges from capital risk
Charges are taken from the capital of the Fund. Whilst this increases the yield, it also has the effect of reducing the potential for capital growth.
Counterparty risk
The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.
EPM techniques risk
The Fund may engage in Efficient Portfolio Management (EPM) techniques, including holdings of derivative instruments. Whilst intended to reduce risk, the use of these instruments may expose the Fund to increased price volatility.
Important information
This is a financial promotion and is not investment advice.
Issued by Royal London Asset Management Limited, 80 Fenchurch Street, London EC3M 4BY. Authorised and regulated by the Financial Conduct Authority, firm reference number 141665. A subsidiary of The Royal London Mutual Insurance Society Limited.
The Fund is a sub-fund of Royal London Equity Funds ICVC, an open-ended investment company with variable capital with segregated liability between sub-funds, incorporated in England and Wales under registered number IC000807.
The Authorised Corporate Director (ACD) is Royal London Unit Trust Managers Limited, authorised and regulated by the Financial Conduct Authority, with firm reference number 144037.
For more information on the fund or the risks of investing, please refer to the Prospectus or Key Investor Information Document (KIID).
FTSE indexes and data are an intellectual property of FTSE International Limited (“FTSE”). “FTSE” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The Index is calculated by FTSE or its agent. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or the suitability of the Index for the purpose to which it is being put by Royal London Asset Management.
Source: Royal London Asset Management unless otherwise stated.
