Investors Shun UK Equity Income Funds

UK equity income funds have proved the least popular sector of the year - despite good performance

Karen Kwok 23 June, 2017 | 3:28PM
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UK equity income funds used to be the most popular sector among individual investors – pulling in billions of pounds, managed by household names and forming the core of millions of investors’ portfolios.

In 2014, UK equity income funds attracted £2.7 billion of cash. In 2015, the funds pulled in £677 million. But last year saw an about turn in popularity for the sector; investors pulled £3 billion out of UK equity income funds in 2016. And – despite good performance – the negative trend has continued this year. UK equity income funds have been the least popular sector in 2017, according to data from Morningstar Direct.

Investors in the UK have pulled £1.9 billion out of UK equity income year to date. This outflow has extended their longest monthly outflow streak since May last year – totalling a whopping £6 billion. UK equity income funds have £85 billion under management in May 2017.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Artemis Income I Acc5.09 GBP-2.30Rating
Invesco UK Eq High Inc UK Inc312.64 GBP-1.66Rating
Invesco UK Equity Inc UK Inc1,262.07 GBP-1.56Rating
LF Equity Income A Sterling Acc3.40 GBP0.00
SPW Multi-Manager UK Eq Income A Acc253.31 GBP-2.01Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for

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