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

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
Aberdeen UK Equity Income I Inc444.84 GBP-0.69
Artemis Income I Inc2.57 GBP0.59
AXA Framlington Monthly Income R GBP Acc675.91 GBP0.33
BP PLC456.85 GBP0.00
Diageo PLC3,079.50 GBP0.00
HSBC Income Income C3.37 GBP0.23
LF Miton UK Multi Cap Inc A Acc Retl255.72 GBP0.07
LF Woodford Equity Income C Sterling Acc20.48 GBP-1.00
Marlborough Multi Cap Income B Acc239.50 GBP0.65
Royal Dutch Shell PLC B1,927.00 GBP0.00
Schroder Income Fd Z Acc99.04 GBP0.22
Scot Wid MM UK Equity Income A Acc249.71 GBP0.49
Scottish Widows UK Equity Income B GBP750.95 GBP-0.84
Slater Income B Acc198.04 GBP0.34

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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