Is the UK still viable in investors' hunt for income?

SECTOR REPORT

clock • 6 min read

Investors' thirst for income continues to lead them to the door of equity income funds. Simon Molica, investment research analyst at Morningstar OBSR, examines whether the UK is still a viable option...

The search for income from equities remains a key focus for investors; unsurprising given the extent to which the zero interest rate environment is forcing them to walk the gangplank of risk in search of return and attractive yields. To reflect this thirst, we have seen a raft of new equity income fund launches, investing in regions other than the historically strong traditional dividend markets such as the UK. This is further manifested by the Investment Management Association's (IMA's) creation of its Global Equity Income sector earlier this year. However, the UK continues to domina...

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