Has UK equity income run its course?

UK

Following a year of significant inflows, many commentators believe there is little value left in the UK Equity Income sector. Leigh Harrison, head of equities at Threadneedle, disagrees.

The continued popularity of the UK Equity Income sector comes as no surprise to us. The prospect of a high and growing income has always been attractive and its appeal is only enhanced in the current environment of super-low interest rates, record low gilt yields and sluggish growth.  However, after a year in which the sector has attracted significant inflows, some commentators have suggested that income funds have run their course. We disagree. Income funds are not just for bear markets and we believe we are still near the beginning of a fundamental reappraisal of their value. Out...