Montanaro UK Income – HOLD

This fund was downgraded to a Hold in summer 2025, and no longer appears in the Selection

Introduction to the fund

Montanaro is a specialist in small and medium-sized companies and this fund is no exception. This fund invests in quality growth businesses backed by strong management teams. The fund seeks to grow its dividend over time. One of its differentiating features is the fund’s refusal to buy stocks listed on AIM (Alternative Investment Market) as the team believes these are too risky. The final portfolio is 40-50 stocks. Early supporters of this fund, including Chelsea clients, have access to the significantly cheaper seed share class. We have downgraded this fund to a Hold due to prolonged poor performance.

Fund manager

Guido Dacie-Lombardo, Charles Montanaro

The fund is co-managed by Guido Dacie-Lombardo and Charles Montanaro. Guido joined Montanaro in October 2015 as an analyst after taking a sabbatical to travel – a passion shared by Charles who has even taken a holiday looking for undiscovered tribes in the Amazon. Prior to this, Guido spent six years at Rothschild where he developed an interest in analysing small and mid-sized companies. Whilst there, he advised clients on mergers and acquisitions, as well as a variety of corporate finance roles across industrial, renewable energy, utilities and business services industries. He joined Rothschild having completed a Masters degree in Experimental & Theoretical Physics.

Charles graduated from Durham University with a BA in Anthropology. He spent the first four years of his career in industry, before joining Merrill Lynch in 1980 as a private client broker in London. After working for a number of other companies, Charles founded Montanaro in August 1991. An industry veteran, Charles has grown his company from scratch to become one of the most respected small-cap asset managers in Europe.

Fund performance

Documents

Key facts

  • Chelsea rating

    HOLD – please note that this was downgraded in summer 2025

  • Core Selection

    No

  • Chelsea Risk Rating

    7.5

  • AMC

    0.40%

  • OCF

    0.52%

  • Unit Type

    Acc and Inc

  • Yield

    3.89%

  • FundCalibre rating

    Elite Rated

How to invest

Once you know where you want to invest, there are a number of ways you can invest:

  • Log in here and process your instruction
  • Call us on 020 7384 7300 to buy over the phone or request an application form
  • Download an application form and post it to us, along with a cheque
Find out more
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Important information

Source: Performance data sourced from FE Analytics (IA universe). Yield figures (per annum), Fund Size data and AMCs/OCFs are as at 23/01/2026 unless otherwise stated.

The performance graph, factsheets and Key Investor Information Document is provided by FEfundinfo, and updated on a daily basis.

Some funds listed are off shore-domiciled and subject to different regulations. Off shore funds typically do not offer investor compensation under the UK Financial Services Compensation Scheme (FSCS).

Performance history extended by FE fundinfo to illustrate the fund’s longer-term record.

Sector rankings calculated from multiple underlying sectors; certain funds remain unranked due to limited comparability.

Funds assigned to an alternative IA sector; sector rankings may differ accordingly.

The information provided is based on our proprietary qualitative and quantitative research. Whilst reasonable efforts have been taken to ensure accuracy, Chelsea Financial Services cannot guarantee that the information is free from errors, omissions, or inaccuracies.

This information does not constitute investment advice and should not be interpreted as a recommendation to invest in any fund listed. Past performance is not a reliable indicator of future returns.

Please read the full Important Notice on page 2 of the FundReview 2025 carefully before making investment decisions.

Whilst every effort has been made to ensure the accuracy of this information, Chelsea Financial Services takes no responsibility for any errors, omissions or inaccuracies contained therein. The funds within the Chelsea Selection are based on our proprietary research, which is both qualitative and quantitative. Please note this is not investment advice, nor does it imply that you should invest in this fund. Past performance is a not a guide to future returns.

To find out more about our Chelsea Risk Rating, please visit our dedicated page.

The AMC (annual management charge) is paid to the fund management company for managing the fund. It is calculated as a percentage of the value of the fund. The AMC is less than the Ongoing Charges Figure (OCF).

The OCF (ongoing charges figure): The cost includes the AMC and other fees such as registration, regulatory, audit and legal fees but does not include transaction costs and performance fees.