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 - 3-year performance
Funds To Watch – 3-year performance
- Headed by Jeremy Lang and William Pattisson, the Ardevora UK Income Fund is one of the more growth oriented strategies in the sector, aiming to capitalise on market mispricing created by behavioural biases. Fund performance has benefited from the outperformance of growth style factors in recent years.
- The PFS Chelverton UK Equity Income Fund focuses on mid-cap stocks yielding at least 4%. Its strategy has been well rewarded in recent years, leading to strong outperformance, including versus the more relevant mid-cap indices, and has one of the best records for distribution growth in the sector.
- The Montanaro UK Income Fund has also benefited from the strong outperformance of small and mid-caps in recent years. Montanaro is an independent boutique that has specialised in the management of UK and European small-cap strategies for more than 20 years. The bulk of this fund is invested in the UK but the team also leverage their continental European expertise, with a 15% allocation to non-UK listed stocks at present. All holdings fulfil the team’s well-defined quality growth criteria.
