Equity income suffers credit crisis worse than other sectors

If the past 12 months have been difficult for investors in the UK equity market, they have been even...

If the past 12 months have been difficult for investors in the UK equity market, they have been even tougher for equity income investors. In the year ending 31 May 2008, the average fund in the IMA UK Equity Income sector underperformed the average fund in the IMA UK All Companies sector by 3.76%. In fact, of the 90 funds in the income sector, not one produced a positive return, with the best fund delivering -2.92% and the worst fund returning -30.05%. In the UK equity market, the last year has been all about the financials and resources sectors. Because of the yields, income funds have t...