Are Investors Wrong to Dump UK Equity Income Funds?

Investors sold £7bn worth of UK equity funds last year, but Sanlam's Philip Smeaton says there’s still lots of reasons to be excited by UK equity income

David Brenchley 1 February, 2018 | 9:32AM
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Investors have been selling funds invested in UK stocks

Investors showed no love to UK equity funds in 2017. More than £6.7 billion of assets were pulled out of the Investment Association’s UK Equity Income, UK All Companies and UK Smaller Companies sectors, according to Morningstar Direct data to December 31.

The UK Equity Income sector took the brunt of this, with investors selling out of the sector to the tune of £3.7 billion through the course of the year. The Morningstar Silver-rated Woodford Equity Income Fund accounted for £1.3 billion of that outflow after two years of poor performance.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Income I Inc2.50 GBP1.36Rating
ASI UK Income Equity I Inc455.27 GBP0.55Rating
AXA Framlington Monthly Income R GBP Acc708.82 GBP0.54Rating
BP PLC284.00 GBP0.00Rating
Diageo PLC3,472.50 GBP0.00Rating
HSBC Income Income C2.98 GBP0.82Rating
LF Equity Income C Sterling Acc3.65 GBP0.00
Marlborough Multi Cap Income B Acc237.69 GBP1.42Rating
Premier Miton UK Multi Cap Inc A Acc Ret322.93 GBP0.98Rating
Royal Dutch Shell PLC B1,339.40 GBP0.00Rating
Schroder Income Fd Z Acc1.03 GBP1.19Rating
Scottish Widows UK Equity Income B GBP701.00 GBP-0.18Rating
Slater Income B Acc199.59 GBP0.98Rating
SPW Multi-Manager UK Eq Income A Acc260.23 GBP1.06Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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