UK Equity Income Funds

by Richard Allum on 12 August 2008

One of our contributors was asked to prepare a short presentation to compare and contrast two funds from the same IMA sector and chose:

both of which are in the IMA UK Equity Income sector.

You can download the presentation by clicking here (this is a MS PowerPoint file).

It is interesting to show how two funds in the same sector, with the same objective and which both invest over 90% in UK Equities take a totally difference approach to investing/achieving that objective.

It’s interesting to see from the performance data how the funds performed similarly in 2005, 2006 but how much performance has diverged from 2007 to date as market conditions have altered – with Neil Woodford taking a defensive approach from a ‘macro’ viewpoint while Anthony Nutt sticks to his high yielding stocks (esp financial stocks).

This just goes to that focusing purely on past performance – or selecting a fund that was doing well then never bothering to review it – can come back to haunt you.

Leave a Comment

Previous post:

Next post: