The income funds which slashed dividends in 2011

A third of UK Equity Income funds slashed distributions to investors in 2011, despite a bumper year for UK-listed companies which saw dividend payouts hit an all-time high of £67.8bn.

A report by independent financial adviser Dennehy Weller & Co (DWC) into one of the country's most popular investment sectors claims 34% of UK equity income funds cut their payouts. Threadneedle's UK Equity Alpha Income fund reduced payouts by the most, with  Leigh Harrison and Richard Colwell's £240m fund cutting its dividend by 12.7%. The fund paid out 0.967p in dividends per unit. On average the sector increased payouts by 4.82%, with ten of the 101 funds managing to grow payouts by more than 10%. The £85m Axa Framlington Monthly Income fund, managed by George Luckraft, increase...