In this week’s Monday Manager, Portfolio Adviser speaks to Matt Kirby, portfolio manager for the £887m Royal London Global Equity Income strategy.
He discusses the fund performance during different market conditions, how AI is impacting holdings and what he has learned about running an equity income fund during his fund management career.
The Monday Manager series covers fund managers that have worked on their fund for over three years, and where fund assets are over £100m.
When did you take over the Global Equity Income fund? What sets you apart from others in the same peer group?
I began managing the fund in November 2024, alongside Richard Marwood and Paul Schofield. 2025 proved to be a valuable stress test for the strategy, allowing us to assess both our ability to protect capital during the sharp sell‑off in the first half of the year and to redeploy capital into companies that benefited from the subsequent rebound.
Equity income funds tend to be relatively defensive in nature. They often outperform in more challenging market environments but can struggle to keep pace when market momentum is elevated and corporate growth is strong and concentrated. Some funds lean heavily into this identity, taking large style, sector or regional bets, while others have pivoted away from it, anchoring themselves to a particular definition of quality.
Where our fund perhaps differs is that we welcome, but do not depend on, an ideal environment for equity income. Instead, we aim to remain competitive across a broad range of market conditions.
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How has the fund coped in different market conditions since launch?
The past six years have thrown almost every kind of market environment at equity investors. The fund held up well through the volatility of 2020, stayed ahead as economies reopened in 2021, and even grew capital in 2022 despite the market falling 8% as inflation surged. It moved broadly in line with the strong rebound in 2023 and then delivered high‑teens returns in 2024, finishing only slightly behind a very narrow, concentrated index.
Conditions for global equity income were difficult in 2024, but 2025 brought a more supportive backdrop. As the dominance of the ‘magnificent seven’ faded and leadership broadened, especially across continental Europe and the UK, the fund delivered 4.5% relative outperformance. While uncertainties remain, the early signs in 2026 suggest that we may be early in this market dynamic.
How is AI shaping your investment universe?
Artificial intelligence is creating a wide range of opportunities for investors, but despite being several years into this cycle, there are still many unknowns.
Our focus has been on areas where we can see genuine value creation across the AI stack. Early in a technology cycle, it is typically easier to underwrite returns in the infrastructure layer than in applications. Wafers, packaging, memory, data‑centre infrastructure and energy remain constrained, and we expect companies controlling these bottlenecks to benefit from stronger pricing power and more durable economics while demand for AI workloads continues to grow.
At the same time, AI is forcing a reassessment of traditional business models. More computer‑intensive workloads are likely to alter software economics structurally, compressing gross margins and shifting value capture toward usage‑ or outcome‑based pricing rather than seats. This creates both risk and opportunity and has led us to think more deeply about what truly defines a resilient business model.
While the jury is still out on the ultimate returns on AI investment, the drive for efficiency across the technology ecosystem, combined with advantages such as distribution, proprietary data and access to capital, suggests that certain companies may be particularly well placed to benefit over the long term.
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Tell us about a stock you backed early on. Are you still an investor?
One of the first stocks we added to the fund was Analog Devices. It increased our exposure to AI‑related demand in data centres as well as to longer‑term ‘physical AI’ applications. At the time, the company was facing cyclical headwinds and tariff uncertainty, which provided an attractive entry point.
The shares have roughly doubled since the April 2025 lows, but given the company’s strong operational execution, favourable structural tailwinds and attractive shareholder returns, we have resisted the temptation to trim the position.
Where do you tend to find resilience in volatile markets?
Often the greatest risk of capital destruction comes from companies that see themselves as something that they are not. We believe resilient companies align returns, investment and distributions with where they are in the corporate life cycle, positioning them to create value for shareholders across a range of environments.
In volatile markets in particular, we focus less on where resilience can be found at that particular point in time and more on the core characteristics that enable a business to be resilient in the first place.
What advice have you received that made an impact on you as a portfolio manager?
I’ve received meaningful guidance over the course of my career, starting as an intern and continuing into my work managing money today. The piece of advice that has probably had the biggest impact, however, was given to me on a tennis court.
To perform in the key moments of a match, it’s essential to play in a way that suits your personality. Investing is no different. You are far more likely to perform under pressure if you understand who you are and manage money in a style, and at an organisation, that is the right fit for you.
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What has investing taught you about yourself?
It has taught me a great deal about temperament. I tend to be quite obsessive, which can be both a strength and a weakness in this industry. Over time, I’ve learned that it’s acceptable not to know everything you would like about a company, provided you reflect that uncertainty through position sizing.
What traits make you suited to run an equity income strategy?
Running a successful equity income strategy is ultimately about discipline and judgment – being willing to walk away from over‑valued stocks and resisting the temptation to chase yields that may not be sustainable through a downturn. I don’t claim to have superior insight, but one of my strengths is patience. I’m comfortable waiting for the right opportunities, sticking to a clear process, and allowing valuation discipline to do the heavy lifting over time.
