Nine UK Equity Income funds for all occasions
By International Adviser, 10 Feb 16
The presence of so many mega-cap stocks in the UK market introduces a risk for equity income investors, in the form of dividend concentration.
Funds to watch - Newcomers
Funds To Watch – Newcomers
- Far from being a genuine newcomer, Neil Woodford is a veteran investor with more than 30 years’ experience in the sector. The CF Woodford Equity Income Fund is managed according to the same disciplined, bottom up approach that he has successfully employed throughout his career, with the focus on building a portfolio of high quality, undervalued businesses.
- Chris Reid at Majedie manages the St James’s Place UK Income Fund following an approach he has employed while managing other income funds with since 2011. He focuses on investing in dividend-paying stocks that the market views as average to poor, but which have the potential to significantly improve operational performance and benefit from a valuation rerating.
- The Insight Equity Income Booster Fund offers a higher level of income than most others in the sector, with a trailing 12-month yield of over 8%. This is achieved via a call option overlay strategy, whereby the fund sells options on its equity holdings. This significantly boosts the level of income received, but reduces the potential upside from capital growth.
