Who is to blame for the performa nce of UK equity income funds?

Recent volatility in financials resulted in considerable negative press for the UK Equity Income sector. However the main culprits of early underperformance were other sectors - and those trends have now reversed

Earlier in the year there was considerable press coverage suggesting the long-term appeal of equity income funds was waning. Much of this was predicated on the fact the sector was undergoing a phase of short-term underperformance relative to growth funds. The argument ran that with financials being a natural hunting ground for equity income investors, and with that sector likely to remain out of favour, equity income underperformance was likely to persist. This analysis, however, missed some important points. In fact, at the time of writing, the median equity income and growth funds (as m...