Equity income strategies focus on those companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies with steady profits, and therefore an equity income strategy will often prove more defensive in falling markets, though it may lag a rapidly rising market. Dividends reinvested over time can have a powerful compounding effect.
As corporate governance has improved across the globe and more companies have started to pay dividends, UK investors have been able to look to new markets for income-generating companies. This has led to the expansion of global equity income funds, which are useful for UK investors who want a lower risk, one-stop shop approach to investing outside their home market.
These are 'go anywhere' funds that can seek out the best dividend-paying companies around the globe. Our 11 Rated Funds offer a wide choice of investment styles and methodologies to keep income flowing in.
Strategies range from targeting a relatively high and sustainable initial yield, to those which start with a lower income that they expect to grow over time. Indeed, one of our Rated Funds has grown its dividend in each of the past 50 years.