Torrid time for UK equity income leads investors to seek solace in global funds

The choices facing income-seekers are increasingly limited. The climate of weak growth and high inflation has historically been bad for bonds.

Also, after a lengthy bull market and with yields at historic lows, many are suggesting fixed income’s best years are past. The logical choice for most investors would be equity income, but the UK Equity Income sector has had a torrid time. With a series of new launches, a number of fund managers are now suggesting global equity income funds are the answer. The theory runs the UK Equity Income sector is a busted flush. Battered by a triple whammy of the banking crisis, which knocked the share prices of high-yielding banks, companies cutting dividends in the face of the disintegration ...