The Newton Asian Income fund has become particularly popular. Managed by Jason Pidcock, the fund provides approximately equal returns from income and capital growth. The fund hunts for high quality and sustainable companies that increase their dividends through earnings growth, providing a more stable income stream for investors seeking returns away from the UK shorelines. This fund currently has an attractive yield of 4.92 per cent.
Another fund from the BNY Mellon stable has remained popular among investors throughout the year. The Newton Global Higher Income fund, managed by the respected James Harries, seeks to identify global companies able to achieve rising annual income alongside capital growth. Key holdings in this thematically approached fund include tobacco, pharmaceutical and food retailers. The fund has an historic income yield of 4.3 per cent (as at 30 September).
The Invesco Perpetual Monthly Income Plus fund, managed by the trio of Paul Read, Paul Causer and Neil Woodford has historically provided some of the best returns in the sector and has a current yield of around 6.53 per cent.
Similarly, the Invesco Perpetual High Income fund, 2011’s top UK equity income performing fund, shows no signs of dropping in popularity. Managed by Neil Woodford, the UK’s most widely acclaimed and respected manager, this fund is a stalwart for those investors seeking additional income from a core UK fund. Heavily weighted towards pharmaceutical companies, Mr Woodford’s long term, conviction led approach to investing remains popular, with the fund returning a yield of 3.83 per cent.
Investors, it seems, have been sticking to the devils they know, with both the First State Global Emerging Market Leaders fund, managed by Jonathan Asante and Glen Finegan. As investor and media focus shifts beyond simply Brazil, Russia, China and India, this fund offers a more defensive approach to these the opportunities through a large and mid-cap bias with a view to holding these for the longer term thereby reducing turnover.
The Artemis Income fund managed by Adrian Frost and Adrian Gosden is another behemoth of the UK equity income arena, with a current attractive yield of 4.70 per cent. Notably, this fund labeled Tesco stock “attractive” based on its current valuation, and bought this into the portfolio. The Aberdeen Emerging Markets fund offers investors access to emerging market economies with a current emphasis on sectors such as financials, basic materials and telecom.
Andy Parsons is head of investment research at the retail stockbroker The Share Centre.