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FE Trustnet survey: What do you think about UK equity income funds?

02 September 2016

Ahead of our upcoming UK equity income event, FE Trustnet would like to find out what you think about this highly popular, yet troubled, sector.

Despite its raging popularity, it seems the outlook for the UK equity income space is becoming increasingly difficult to call.

While it has always been a highly concentrated market (with vast majority of total UK dividends being paid by just a handful of large companies), fears have mounted that more and more firms will be forced to cut their dividends as poor earnings growth leads to low levels of dividend cover.

Though Brexit-induced sterling weakness appears to be positive for the largely international-facing UK market, there is also still a vast amount of uncertainty surrounding the referendum result and how it will affect financial markets.

On top of all that, the odd market dynamics of recent years have meant many funds have been booted out of the IA UK Equity Income sector for failing to hit the peer group’s required yield criteria (10 per cent above the FTSE All Share’s yield over three years).

As such – and especially with the Investment Association’s consultation into the sector’s guidelines underway – the debate now rages as to what exactly makes an equity income fund?

Given the amount of money that is invested in the space but the clear issues facing it, our next FE Trustnet Select event in September will be focused on UK equity income, during which will bring together a number of leading UK equity income fund managers and high-profile fund buyers to discuss what the future might hold for the asset class.

Ahead of this, however, we would like to find out what you think about equity income funds, the outlook for UK dividends and general market trends to inform our debate on the day and to help build articles on the subject.

Here is a link to the survey, which should only take a few minutes to complete. 

Thank you! 

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