How are global equity income funds faring?

Charlotte Richards talks to global equity income fund managers about the benefits (and drawbacks) of the new sector classification, and what is driving the performance of their portfolios and dividend growth

clock • 5 min read

Charlotte Richards talks to global equity income fund managers about the benefits (and drawbacks) of the new sector classification, and what is driving the performance of their portfolios.

The past few years has seen a deluge of global equity income funds enter the market. In response, the IMA created the Global Equity Income sector in January 2012 and 20 income-focused funds, which were previously part of the 200-strong Global sector, moved to form the new category. To be included in the sector, the IMA specifies funds must invest at least 80% of their assets globally in equities, in addition to be diversified by geographical region. It also stipulates the fund must have the intent to achieve a historic yield on the distributable income in excess of 110% of the MSCI World...

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