Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Sanlam equity income study: 13 movers & shakers

We present 13 funds which have moved up or down the rankings by either riding the storm or being pulled off course.

UK equity income funds still hold more than £60 billion in assets — 10% of all Oeics — despite having seen the value of their investments hit hard in the first half of this year, according to Sanlam's biannual Income Study.

Better performers have continued to provide respectable returns, with dividend cuts potentially offering opportunities to buy shares on the cheap.

'Even after recent outflows, our Income Study illustrates that the sector remains an attractive place for those seeking an income from their investments,' said Philip Smeaton (pictured), chief investment officer at Sanlam UK.

'Fund managers who appear in the white list are adept at taking advantage of a volatile corporate and economic climate.

'Looking ahead, markets will accommodate both the Brexit outcome and, in the longer term, the expected interest rate rises in the coming years.

'In the meantime, UK equity income funds are likely to remain a favoured source of income at a level unavailable elsewhere.'

Here are 13 funds which have moved up or down the rankings by either riding the storm or being pulled off course.

UK equity income funds still hold more than £60 billion in assets — 10% of all Oeics — despite having seen the value of their investments hit hard in the first half of this year, according to Sanlam's biannual Income Study.

Better performers have continued to provide respectable returns, with dividend cuts potentially offering opportunities to buy shares on the cheap.

'Even after recent outflows, our Income Study illustrates that the sector remains an attractive place for those seeking an income from their investments,' said Philip Smeaton (pictured), chief investment officer at Sanlam UK.

'Fund managers who appear in the white list are adept at taking advantage of a volatile corporate and economic climate.

'Looking ahead, markets will accommodate both the Brexit outcome and, in the longer term, the expected interest rate rises in the coming years.

'In the meantime, UK equity income funds are likely to remain a favoured source of income at a level unavailable elsewhere.'

Here are 13 funds which have moved up or down the rankings by either riding the storm or being pulled off course.

Slater Income

Managed by: A-rated Mark Slater (pictured), Barrie Newton, Ralph Baber, Nigel Milton

Position: 1 White List 

Previous position: 4 White List

Income of five years to 30 June: 32.4%

One year total return: 4.1%

Five year total return: 22.1%

Volatility: 9.6

What Sanlam said:

'Its high-ranking dividend yield versus peers, consistent performance and moderate volatility have brought the fund into the first position.'

Artemis Income

Managed by: Adrian Frost (pictured), Nick Shenton

Position: 4 White List

Previous position: 5 Grey List

Income of five years to 30 June: 26.8%

One year total return: 7.1%

Five year total return: 10.6%

Volatility: 9

What Sanlam said:

'Adrian Frost’s Artemis Income Fund had quite a big fall in 2017. It was placed in 30th position a year ago versus all peers for the period.

'Since then, the fund has delivered on its mandate and, despite not paying the highest dividend income, it has managed to perform consistently in all the other years reviewed, in particular over the last two studies.'

Schroder Income Maximiser

Managed by: Kevin Murphy, Mike Hodgson (pictured), Nick Kirrage

Position: 7 White List

Previous position: 11 Grey List

Income of five years to 30 June: 42.9%

One year total return: 10%

Five year total return: 11%

Volatility: 9

What Sanlam said:

'For the following two studies, the fund was in the middle of the Grey List before moving up 18 places this time, helped by the dividend income element which has been stronger versus peers over the period reviewed.'

Insight Equity Income Booster

Managed by: Tim Rees

Position: 14 White List

Previous position: not ranked

Income of five years to 30 June: 41.2%

One year total return: 2.7%

Five year total return: 11.1%

Volatility: 8.9

What Sanlam said:

'Insight Equity Income Booster fund has made an impressive appearance at the bottom of the White List for its first review following its recent five-year anniversary.

'The fund, managed by Tim Rees, benefited from decent returns, a high dividend income paid over the period under review and a lower standard deviation compared to peers.'

Schroder Income

Managed by: Nick Kirrage (pictured left), Kevin Murphy (pictured centre)

Position: 8 White List

Previous position: 32 Grey List

Income of five years to 30 June: 26.8%

One year total return: 13.5%

Five year total return: 12.9%

Volatility: 10.4

What Sanlam said:

'This fund, managed by Kevin Murphy and Nick Kirrage, has moved up 38 places in the review and ranks first in performance versus peers, with a respectable yield of 3.4%.'

Royal London UK Equity Income

Managed by: Martin Cholwill (pictured)

Position: 8 Grey List

Previous position: 5 White List

Income of five years to 30 June: 19.2%

One year total return: 3.0%

Five year total return: 18.7%

Volatility: 9.6%

What Sanlam said:

'The fund has had a poor two-year period in terms of calendar performance, ranking 22 out of the peers within the study.'

SLI UK Equity Income Unconstrained

Managed by: Thomas Moore (pictured)

Position: 9 Grey List

Previous position: 6 White List

Income of five years to 30 June: 20%

One year total return: 7.6%

Five year total return: 20.5%

Volatility:  11.8%

What Sanlam said:

The fund fell 17 places out of the White List, 'due to a higher volatility than peers driving the fund lower.'

Premier Monthly Income

Managed by: Chris White (pictured)

Position: 13 Grey List

Previous position: 9 White List

Income of five years to 30 June: 24.1%

One year total return: 0.8%

Five year total return: 14%

Volatility: 10.3

What Sanlam said:

The fund fell 18 places, also primarily due to higher volatility. 

Threadneedle UK Equity Income

Managed by: Richard Colwell (pictured)

Position: 22 Grey List

Previous position: 14 Grey List

Income of five years to 30 June: 19.1%

One year total return: 1.7%

Five year total return: 17%

Volatility: 9.6

What Sanlam said:

'The fund, run by Richard Colwell, dropped another eight places into the Grey List and, unlike some of its peers, this is predominantly due to disappointing performance over the last period reviewed, which has led to it ranking 42 out of the 61 funds.'

Ardevora UK Income

Managed by: A-rated Jeremy Lang (pictured), A-rated William Pattisson

Position: 5 Grey List

Previous position: 4 Black List

Income of five years to 30 June: 20.2%

One year total return:  5.2%

Five year total return:  14.7%

Volatility: 10.5 

What Sanlam said:

'The strongest positive mover is the Ardevora UK Income Fund, which has climbed 31 places from the Black List to the top of the Grey List.

'The fund has tended to deliver consistently on a calendar year versus peers.'

Unicorn UK Income

Managed by: + rated Fraser Mackersie (pictured), + rated Simon Moon

Position: 13 Black List

Previous position: 4 Grey List

Income of five years to 30 June: 20.0%

One year total return: -0.9%

Five year total return: 6.1%

Volatility: 10.7

What Sanlam said:

'The Unicorn UK Income fund has dropped from the Grey List to the Black List after being in the White List in July 17.

'The fund, managed by Fraser Mackersie and Simon Moon, suffered from stock-specific issues which have affected the most recent calendar numbers, leaving the fund at the bottom of the peer group over the period reviewed.'

Schroder UK Alpha Income

Managed by: Matt Hudson (pictured)

Position: 5 Black List

Previous position: 25 Grey List

Income of five years to 30 June:  22.8%

One year total return: -0.5%

Five year total return: 11.4%

Volatility: 10.2

What Sanlam said:

'Performance was the key driver for the 12-position fall, as both 2016 and 2017 have been challenging versus peers.'

Fidelity Enhanced Income

Managed by: David Jehan, Michael Clark (pictured)

Position: 4 Black List

Previous position: 30 Grey List

Income of five years to 30 June: 40.4%

One year total return: -5.2%

Five year total return:  9.8%

Volatility:  8.2 

What Sanlam said:

The fund 'delivered disappointing performance numbers versus peers over the period reviewed.'

Related Fund Managers

Mark Slater
Mark Slater
16/155 in Equity - UK (All Companies) (Performance over 3 years) Average Total Return: 43.39%
Michael Clark
Michael Clark
78/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 15.27%
Simon Moon
Simon Moon
70/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 19.20%
Fraser Mackersie
Fraser Mackersie
69/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 19.20%
William Pattisson
William Pattisson
62/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 21.01%
Jeremy Lang
Jeremy Lang
61/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 21.01%
Richard Colwell
Richard Colwell
26/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 29.47%
Chris White
Chris White
66/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 20.00%
Thomas Moore
Thomas Moore
77/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 15.54%
Martin Cholwill
Martin Cholwill
18/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 33.04%
Nick Kirrage
Nick Kirrage
12/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 35.54%
Mike Hodgson
Mike Hodgson
9/100 in Equity - UK Equity Income (Performance over 1 year) Average Total Return: 9.30%
Kevin Murphy
Kevin Murphy
11/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 35.54%
Nick Shenton
Nick Shenton
23/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 30.09%
Adrian Frost
Adrian Frost
29/84 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 28.80%
Comment & analysis

Twitter