Wealth managers voice income fears as global funds cut payouts

Almost half the funds in the IMA Global Equity Income sector have cut dividend payouts over the past year, leading some wealth managers to caution income hunters when allocating to the increasingly popular space.

Global funds have seen greater inflows than UK income products this year, but many have had to scale back payouts as problems in Europe and a lack of focus on dividends by companies in other markets impacted portfolios. Data compiled by Lipper for Investment Week analysing income distributions from both sectors reveals many of the funds in the global sector struggled to maintain payouts in 2012, and almost half cut their dividends. Nine of the 19 funds in the IMA Global Equity Income sector with a two-year track record have cut their payouts in the last year, representing 47% of the s...