Peter Brunt: Why has UK equity income disappointed in 2016?

The Morningstar UK Equity Income category average fund is behind the FTSE All-Share in the first half of 2016. This is in sharp contrast to the last six calendar years, when it has consistently outperformed the index. So why has the sector underperformed so far this year? Market capitalisation Much of this performance difference can be attributed to the market cap profile. The category average fund - which aggregates all the holdings in each fund within the category to form a hypothetical portfolio - shows a significantly lower weighting to giant-caps and a higher weighting to mid an...