3 Top-rated Global Income Funds

These funds' managers do a sterling job of providing shareholders with an income stream from global dividend-paying companies

Holly Cook 10 July, 2015 | 11:43AM
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The UK has a strong record for dividend-paying companies, with average yields far outshining those of their US peers, for example. In recent years, European companies have increasingly been on income-seekers shopping lists, while certain emerging-market firms are also desirable. Rather than restrict their portfolio to only those UK-listed companies that can easily be purchased individually, many investors are increasingly looking further afield to bolster their income stream and are able to access these international dividends through their fund manager.

The regional diversification of global equity funds makes them suitable as core positions in a portfolio. And there are several funds, focusing on generating regular income by investing in global dividend-paying companies, which have earned favourable accolades from Morningstar analysts.

These three funds boast our highest analyst ratings of Gold or Silver.

M&G Global Dividend GBPSilver

Manager
Stuart Rhodes

Ongoing Charge
1.66%

Annualised 3-year Return
9.12% per year

12-month Yield
3.61%

Dividend-paying Frequency
Quarterly

Minimum Initial Investment
£500

ISA-eligibility
Yes

Morningstar Analyst Quicktake
This global dividend fund has a strong record of outperformance, even in market environments where income investing has been out of favour. The fund has delivered excellent returns relative to peers in successive calendar years since launch, whilst still managing to achieve a yield greater than the MSCI AC World index. 

Newton Global Income GBPSilver

Manager
James Harries, Nick Clay

Ongoing Charge
1.62%

Annualised 3-year Return
9.07% per year

12-month Yield
4.39%

Dividend-paying Frequency
Quarterly

Minimum Initial Investment
£1,000

ISA-eligibility
Yes

Morningstar Analyst Quicktake
Despite a tough 2013, we think this remains a strong choice for investors. Harries’ tenure he has successfully navigated the fund through different market cycles and we think his ability to do this, particularly during periods when other income managers have found it difficult to keep up with growth, bodes well for this fund's future.

Veritas Global Equity Income GBPGold

Manager
Charles Richardson, Andrew Headley

Ongoing Charge
1.65%

Annualised 3-year Return
4.79%

12-month Yield
4.51%

Dividend-paying Frequency
Twice a year

Minimum Initial Investment
£7,000

ISA-eligibility
Yes

Morningstar Analyst Quicktake
This fund ranks amongst the strongest offerings in its sector. The real-return focus has driven the fund to strong returns during both rising and falling markets over its lifespan thus far, and given our understanding of the managers’ investment style and focus on margins of safety, we are not overly concerned about 2013’s performance. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BNY Mellon Global Income GBP Inc2.56 GBP0.02Rating
M&G Global Dividend GBP A Inc295.02 GBP0.80Rating
Veritas Global Eq Income Retail GBP214.00 GBP-0.37Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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