Deep Dive: Global equity income funds pick inflation winners

Sustainable pricing power will be key

clock • 5 min read
Well-diversified income funds handily placed to outperform amid rising inflation.
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Well-diversified income funds handily placed to outperform amid rising inflation.

As growth stocks are hit by rising interest rates and uncertain future earnings, steady and established companies with dependable cashflows and reliable dividends suddenly look like an attractive place for investors to put cash to work.

According to analysts, these types of companies offer some protection when broad equity indices fall. Charles Stanley CIO Patrick Farrell said that global income managers can generally be divided into two camps: those running defensive strategies and those willing to blend defensive picks with cyclical opportunities. M&G Global Dividend sits in the latter category. Farrell explained that while non-dividend payers previously drove global equity indices to their highs, fund manager Stuart Rhodes has more recently outperformed "through solid stock selection". Andrew Bailey: Soaring infla...

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