Global vs UK equity income: Is there a clear winner emerging?

Tineke Frikkee, portfolio manager of the Newton Higher Income fund, explains why the debate between UK and global equity income is past its sell by date.

When evaluating equity income strategies, investors might want to consider the risk-return characteristics that can be identified with particular markets and individual investment managers. In a more volatile world, an asymmetric investment strategy, making money at times of rising asset prices, but losing less when prices fall, we believe is appropriate. Historic fund returns need to be assessed in light of their historic volatility and their ‘protective’ quality during market downturns. We also believe defensive UK equity income funds can offer a similarly attractive risk-return profil...