You are here: Home - Investing - Experienced Investor - News -

‘Remarkable’ time for equity income – Sanlam

Written by:
This is a ‘remarkable time for UK Equity Income fund investment’ according to Sanlam’s latest income study, with many funds paying an income of 4%-6%.

Three funds have been promoted to its coveted ‘white list’ – the RBS Equity Income fund, the Man GLG UK Income fund and the Lazard Multicap UK Income fund. At the same time, the Ardevora UK income and UBS UK Equity Income funds have dropped into the black list, having seen disappointing performance against their peer group.

The group said the top half of the white list has remained consistent, with the LF UK Miton Multi Cap Income fund leading the pack. The SLI UK Equity Income Unconstrained fund is also back on the list after a period of difficult performance. Axa Framlington Monthly Income and Marlborough Multi Cap Income also make the white list.

Although the top-performing funds tend to have a multi-cap approach, the Unicorn UK Income fund has suffered for its smaller company, domestic UK focus. It had a difficult run of performance in the wake of the Brexit vote and has moved from the white to the grey list in spite of good, long-term performance. Other funds slipping down the rankings included the Threadneedle UK Equity Alpha Income and Monthly Income funds.

The study stated: “There are many good reasons to be enthused by the UK Equity Income sector, especially given the poor returns available on cash and bonds, but it is important to be sensitive to the total return achievable. The amount of income received is the driving force of many income fund investors and to produce the best results, selection of the most suitable funds is critical.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Financial regulator remains concerned over high-cost credit markets

The Financial Conduct Authority said it is still concerned about the high-cost credit sector, but added any intervention would need...