Wealth Shortlist Update: CT UK Equity Income

We have taken the decision to remove the CT UK Equity Income fund from the Wealth Shortlist.

Richard Colwell, the fund's lead manager, has announced he will retire from Columbia Threadneedle (CT) at the end of November 2022. At the same time, he'll step down as manager of the CT UK Equity Income fund.

Colwell has managed the fund since 2010, initially alongside previous lead manager Leigh Harrison. He took over as lead manager of the fund following Harrison's departure from the group in 2015. Over the long term, he has delivered an attractive level of income and growth.

Jeremy Smith will take over as lead manager of the fund. He is currently Head of UK Equity Research and a fund manager at CT, and has worked with Colwell since joining the firm. Jonathan Barber will remain as deputy manager.

The new managers will continue to run the fund using the same investment style and approach. However, we are mindful they are untested on this fund over a prolonged period in the same way as Colwell.

Smith has over 20 years' experience in analysing and managing UK equities. He started his fund management career as part of the UK large companies team at Schroders prior to joining Neptune in 2006. He subsequently joined Threadneedle (now CT) in 2015.

While Smith has experience managing funds investing in UK larger companies, these have mainly been focused on growth rather than income. At CT he has run the UK Opportunities fund since the end of 2015. Over this time the fund hasn't performed as well as the broader UK stock market, as measured by the FTSE All Share Index, or the average fund in the IA UK All Companies sector*.

Our conviction lies with Colwell when it comes to the management of this fund. On that basis, and the fact Smith does not have an analysable or strong enough track record in UK equity income investing, we believe the fund should be removed from the Wealth Shortlist. There are other UK equity income funds on the Wealth Shortlist in which we have high conviction.

Although we're removing the CT UK Equity Income fund from the Wealth Shortlist, this isn't a recommendation to make any changes to a portfolio. Investors should make sure any investments match their investment goals and attitude to risk. If you're not sure if an investment is suitable for your circumstances, please seek advice.

Past performance is not a guide to the future. Source: *Lipper IM to 31/08/2022.

Find out more about CT UK Equity Income, including charges

View CT UK Equity Income Key Investor Information