Joining us today is Guido Dacie-Lombardo, co-manager of the LF Montanaro UK Income fund, to delve into the UK market and shed light on the extensive resources at Montanaro's disposal. Given the fund's specific focus on small and medium-sized businesses, Guido shares his insights on UK small caps and highlights the expertise of the Montanaro team in producing their own high-quality research. Our discussion covers various topics, including M&A activity, as well as both special and ordinary dividends within the fund's portfolio. Guido concludes by elaborating on the fund's strong ESG credentials, the company’s commitment to achieving Net Zero, and a notable top holding, Games Workshop.

What’s covered in this episode: 

• Why small caps been out of favour in the UK…
• …yet continue to be a good place for long term investors 
• The types of companies the LF Montanaro UK Income fund invests in
• Why the fund doesn’t invest in large FTSE 100 companies
• Why the manager describes the AIM market as a lobster pot market
• The analyst team at Montanaro
• Will M&A activity continue in the UK?
• Company takeovers in the past 12 months
• How the fund’s dividends are holding up this year
• Why the manager is taking a cautious approach to 2023
• The focus on Net Zero targets over the past 18 months
• What is a B Corporation?
• How Montanaro is planning to remove 100% of all historical emissions since the company was founded
• The success of the Warhammer franchise from Games Workshop
• How a potential deal with Amazon could be big for Games Workshop in the future

More about the fund: 

The LF Montanaro UK Income fund stands out from typical UK equity income funds as it specifically targets small and medium-sized businesses. Additionally, each holding provides either dividend yield or the potential for dividend growth. The fund's proven track record, driven by its well-defined approach and emphasis on thorough research, has consistently delivered positive results over an extended period of time.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.