Which is the Best UK Equity Income Fund?

There are hundreds of UK equity income funds - but which do Morningstar analysts rate highest and which have outperformed their peers?

Emma Wall 15 February, 2017 | 4:00PM
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All this week we bring you the best income opportunities across the globe, as picked by top fund managers, professional investors and our own stock and fund analysts as part of Morningstar’s Guide to Finding Investment Income.

UK investors looking for regular income have long favoured home-grown companies. According to Morningstar Direct, more than £57 billion is invested in open-end UK equity income funds – despite outflows over the past year.

Thanks to record low interest rates, over the past five years UK equity income has proved one of the most popular fund sectors. Investors who would usually rely on government bonds and cash to provide them with a regular income have turned to UK equity income funds. Inflows into the sector over the past three years have been significantly boosted by a particularly high profile fund launch in June 2016 – when Neil Woodford’s first eponymous fund took £2 billion of investors' cash in just one month.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
LF Equity Income A Sterling Acc3.40 GBP0.00
Royal London UK Equity Income A740.42 GBP-0.46Rating
Threadneedle UK Eq Inc Rtl Inc GBP0.99 GBP-0.46Rating
Trojan Income O Acc353.14 GBP-0.86Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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