Seeking value in the UK income space

UK EQUITIES

Annabelle Williams asks two UK income managers where they have been finding both value and yield opportunities in the current environment.

UK equity income funds have surged in popularity in recent months, overtaking absolute return as one of the best-selling sectors this year. The sector was again one of the top five best-sellers with net retail sales of £283m in July, well above its monthly average of £140m for the previous 12 months. Income managers have benefited this year from investing in large corporates such as Vodafone, which this month sold its 45% stake in Verizon Wireless for $130bn in one of the biggest deals in corporate history. Its shareholders – of which around 74% are UK income funds – will share a pay-...