Top 5/Bottom 5: Global Equity Income funds

In the current economic climate investors are in search of that ever-elusive yield.

With economic growth sluggish and the bond market suddenly more correlated to equities than ever before, the equity income sector has become an attraction for many.

The draw with equity income is the promise of capital growth along with dividend yield. And as we know, much stock market growth over the long-term is driven mainly by the total-return attributed to dividends.

Article continues after advert

But equity incomes is not necessarily a panacea. For example, in the 12 months to 17 December 2012, the top-performing fund in the IMA Global sector returned £1,252 on an original investment of £1,000. Conversely, the top IMA Global Equity Income fund, shown in the table below, returned £1,184.

Top 5/Bottom 5 IMA Global Equity Income funds
Top 5
Artemis Global Income 1,184
Schroder Global Equity Income 1,183
Lazard Global Equity Income 1,175
Sarasin Global Equity Income Stg Hdg 1,169
Standard Life Glbl Equity Income1,169
Bottom 5
BlackRock Global Income1,094
Aberdeen World Growth & Income 1,090
Skandia Global Equity Income 1,082
Guinness Global Equity Income 1,074
Pictet High Dividend Selection1,068
Figures as at 17 December 2012. Source: Morningstar