15 income funds that are underperforming

Sanlam's twice yearly 'Income Study' of UK equity income funds has a black list, a grey list, and a white list. But which funds ended up in which list?

Sanlam has released the latest tranche of analysis in its Income Study - a 'quantitative assessment' that reviews and monitors the performance of all UK equity income funds over a six-month period.

The study, which has been running for over 30 years, categorises funds into a 'white list', a 'grey list', and 'black list'.

The white list features funds that have shown superior total returns.

Sanlam describes its grey list as 'a temporary home for a manager with an out-of-favour style or an early warning signal for a fund in decline.'

Meanwhile, the black list is for consistent underperformers and may indicate the need for remedial action. That is the list featured in this article.

Each slide shows a fund on the black list, its dividend yield at 31 December 2018, income after five years to 31 December 2018 based on a £100 investment, and total return for the period 1 January 2018 to 31 December 2018. 

Click on to read more. 

 

Sanlam has released the latest tranche of analysis in its Income Study - a 'quantitative assessment' that reviews and monitors the performance of all UK equity income funds over a six-month period.

The study, which has been running for over 30 years, categorises funds into a 'white list', a 'grey list', and 'black list'.

The white list features funds that have shown superior total returns.

Sanlam describes its grey list as 'a temporary home for a manager with an out-of-favour style or an early warning signal for a fund in decline.'

Meanwhile, the black list is for consistent underperformers and may indicate the need for remedial action. That is the list featured in this article.

Each slide shows a fund on the black list, its dividend yield at 31 December 2018, income after five years to 31 December 2018 based on a £100 investment, and total return for the period 1 January 2018 to 31 December 2018. 

Click on to read more. 

 

Fund: AXA Framlington Blue Chip Equity Income

Dividend yield at 31 December 2018: 4.8%

Income based on £100 invested: £23.40

2018 return: -12.1%

Fund: Standard Life Investments UK Equity High Income

Dividend yield at 31 December 2018: 5.4%

Income based on £100 invested: £24.30

2018 return: -15.3%

Fund: Merian UK Equity Income

Dividend yield at 31 December 2018: 5.2%

Income based on £100 invested: £24.90

2018 return: -14.8%

Fund: MI Chelverton UK Equity Income

Dividend yield at 31 December 2018: 5.6%

Income based on £100 invested: £24.90

2018 return: -14.9%

Fund: BMO UK Equity Income

Dividend yield at 31 December 2018: 5.1%

Income based on £100 invested: £21.90

2018 return: -12.4%

Fund: Aberdeen UK Equity Income

Dividend yield at 31 December 2018: 4.3%

Income based on £100 invested: £22 

2018 return: -9.1%

Fund: Ardevora UK Income

Dividend yield at 31 December 2018: 4.6%

Income based on £100 invested: £21.80

2018 return: -10.6%

Fund: MI Downing Monthly Income

Dividend yield at 31 December 2018: 6.1%

Income based on £100 invested: £27.60

2018 return: -18.4%

Fund: L&G UK Equity Income

Dividend yield at 31 December 2018: 5.5%

Income based on £100 invested: £25.90

2018 return: -16.0%

Fund: Unicorn UK Income

Dividend yield at 31 December 2018: 4.8%

Income based on £100 invested: £23.40

2018 return: -15.9%

Fund: Janus Henderson UK Equity Income & Growth

Dividend yield at 31 December 2018: 4.4%

Income based on £100 invested: £20.60

2018 return: -12.8%

Fund: M&G Dividend 

Dividend yield at 31 December 2018: 5.4%

Income based on £100 invested: £26.40

2018 return: -14.9%

Fund: HSBC Income

Dividend yield at 31 December 2018: 4.6%

Income based on £100 invested: £23.50

2018 return: -12.3%

Fund: UBS UK Equity Income

Dividend yield at 31 December 2018: 5.1%

Income based on £100 invested: £21.90

2018 return: -13.9

The black list averages

Dividend yield at 31 December 2018: 5.1%

Income based on £100 invested: £23.80

2018 return: -14.0%

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