UK Equity Income Rated Funds

Equity income strategies focus on companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies, with steady profits. Therefore an equity income strategy will often prove more resilient in falling markets, though it may lag a rapidly rising market.

Equity income investing brings its own valuation discipline. The income yield on any stock is expressed as a percentage of the share price. If the price rises, income falls if the dividends do not rise in tandem. So investors are unlikely to buy companies that are very expensive because the income would be low.

In general fund managers are striving to find those companies where the dividend is high, stable and secure. Some strategies will emphasise those companies paying a growing dividend that can keep pace with inflation; others will seek a high absolute dividend.

These are common themes among the 11 Rated Funds in our core selection. Income strategies also focus on small companies. Such funds can be found among our seven adventurous choices. Investors seeking income should ensure they have exposure to UK funds, because it limits the risk of adverse currency movements.

Five of our choices are investment trusts that can use reserves to smooth income payments. This can be reassuring for investors who withdraw income, but also for growth-oriented investors, because dividends reinvested over the years can have a powerful compounding effect.

UK EQUITY INCOMEBrowse other rated fund groups
Fund & Sector
Rated Funds Group
1 Month Perf.
1 Year Perf.
3 Year Perf.
5 Year Perf.
Evenlode Income
UT UK All Companies
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UK EQUITY INCOME1%
178 / 279
21.5%
59 / 271
42.9%
11 / 257
99.2%
27 / 242
Jupiter Income Trust
UT UK Equity Income
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UK EQUITY INCOME-0.1%
92 / 100
20.8%
7 / 96
31.2%
10 / 84
72.5%
33 / 80
Finsbury Growth & Inc Tst PLC
IT UK Equity Income
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UK EQUITY INCOME2.9%
10 / 24
20.2%
6 / 24
48.7%
1 / 24
125.6%
3 / 24
Royal London UK Equity Inc
UT UK Equity Income
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UK EQUITY INCOME2.4%
21 / 100
20.2%
9 / 96
30.6%
13 / 84
99.3%
6 / 80
MI Chelverton UK Eq Inc
UT UK Equity Income
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UK EQUITY INCOME7.1%
3 / 100
20.1%
10 / 96
34.8%
3 / 84
130%
2 / 80
Threadneedle UK Eq Inc
UT UK Equity Income
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UK EQUITY INCOME1.5%
44 / 100
19.5%
15 / 96
30.5%
15 / 84
87.7%
13 / 80
Franklin UK Equity Income
UT UK Equity Income
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UK EQUITY INCOME0.6%
74 / 100
19.3%
16 / 96
34.1%
5 / 84
81.4%
20 / 80
Montanaro UK Income
FO Equity - UK
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UK EQUITY INCOME4.4%
6 / 62
18.9%
28 / 59
38.4%
3 / 49
103.3%
4 / 42
Rathbone Income
UT UK Equity Income
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UK EQUITY INCOME0.8%
65 / 100
17.8%
34 / 96
33.2%
7 / 84
88.5%
12 / 80
Lowland Investment Company
IT UK Equity Income
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UK EQUITY INCOME5%
3 / 24
15.8%
12 / 24
13%
20 / 24
91.4%
5 / 24
Schroder Income Maximiser
UT UK Equity Income
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UK EQUITY INCOME0.4%
83 / 100
15.1%
55 / 96
20.3%
67 / 84
71.6%
37 / 80
Fidelity Moneybuilder Div
UT UK Equity Income
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UK EQUITY INCOME0.1%
88 / 100
14.7%
59 / 96
27.1%
27 / 84
71%
40 / 80
The CtyofLdn IT
IT UK Equity Income
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UK EQUITY INCOME2.3%
11 / 24
14.2%
16 / 24
26.9%
7 / 24
74.8%
11 / 24
Henderson Global Care UK Inc
UT UK All Companies
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UK EQUITY INCOME2%
108 / 279
13.1%
245 / 271
30.1%
61 / 257
87.6%
52 / 242
MFM Slater Income
UT UK Equity Income
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UK EQUITY INCOME3.7%
11 / 100
13.1%
76 / 96
28.7%
18 / 84
97.3%
7 / 80
Troy Income & Growth Trust plc
IT UK Equity Income
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UK EQUITY INCOME0.2%
22 / 24
12.2%
17 / 24
37.6%
4 / 24
67.8%
17 / 24
Invesco Perp Income
UT UK All Companies
View Factsheet
UK EQUITY INCOME1.6%
130 / 279
11.4%
255 / 271
26.2%
90 / 257
72.1%
101 / 242
The Divrs Inc Tst PLC
IT UK Equity Income
View Factsheet
UK EQUITY INCOME5.5%
2 / 24
7.6%
21 / 24
25%
9 / 24
128.7%
2 / 24
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Rated Funds Update: Rated Funds 2017

View a full list of our Rated Funds 2017 here