Low-yielding segments of market now contain outperforming funds

One of the major issues confronting UK equity income funds over the past year has been the contrast ...

One of the major issues confronting UK equity income funds over the past year has been the contrast between the very poor performance of traditionally higher-yielding sectors such as financials and the strong gains seen in the low-yielding segments of the market such as the resources sector. This problem has been compounded to some degree by the recent number of large, new low-dividend-paying entrants in this area, with the result that any investment process that 'screens out' lower-yielding stocks as being inappropriate holdings in an income fund has, necessarily, experienced a torrid ti...