Five funds from the IA Global Equity Income peer group have managed to combine high and growing dividends each year with strong total returns, according to a study by Trustnet.
We ran the figures based on an initial £10,000 invested at the start of 2020 to the end of 2025. To qualify as an 'ultimate' portfolio, funds had to achieve three main criteria: grow their dividend each year; achieve an above-average total income payout over the entire five years; and make an above-average total return over the half a decade.
The top selection over the past five years is the River Global RGI Global Income and Growth fund, which has produced a total return of £20,422.04 on an initial £10,000 invested.
Some £2,265.38 of this has come from dividends, making it the seventh-highest paying qualifying fund in the sector over the past five years, while £8,176.66 has come from capital gains – the third-highest in the peer group among funds that have a long enough track record.
Formerly the Saracen Global Income and Growth fund, the portfolio changed name when River Global was created in 2025 by combining Saracen, SVM and River & Mercantile. The firm is set to be acquired by Liontrust later this year.
The £185m portfolio is managed by Bettina Edmondston and Alasdair Birch, who have managed the fund since 2015 and 2021 respectively.
It has been the fourth-best performer in the IA Global Equity Income sector over the past five years to the end of 2025 and is one of two funds on the below list to make a top-quartile return during the period.
| The ultimate IA Global Equity Income funds | ||
| Fund | Total return over 5yrs | Dividends paid over 5yrs |
| River Global RGI Global Income and Growth | £20,442.04 | £2,265.38 |
| Vanguard Global Equity Income | £19,042.65 | £2,304.71 |
| VT Vanneck Global Equity Income | £17,293.48 | £2,230.62 |
| Schroder Global Equity Income | £17,120.82 | £2,543.45 |
| BNY Mellon Global Income | £16,570.57 | £1,956.69 |
Source: FE Analytics
The other is Vanguard Global Equity Income, which is managed by the Vanguard's own quantitative equity group as well as fund managers at Wellington Investment Management.
The former ranks the investable universe using a quantitative model, searching for healthy balance sheets, effective use of capital, strong sentiment and reasonable valuations; Wellington, meanwhile, uses a traditional value-equity approach, aiming to create a portfolio with a better growth rate and higher dividend yield than the market from companies also trading at discounts.
Analysts at RSMR rate the fund for the strong track records of both sets of managers.
"We believe that the combination of Vanguard's in-house quantitative equity group and Wellington, and the cost effectiveness of this product, provides an attractive option for investors," they said.
Four of the five funds in this study also appeared within the top 10 global equity income funds that paid the most in dividends.
However, this was not the case with BNY Mellon Global Income, which enters the list in the final spot. Its dividends of £1,956.69 place it just outside the top 10 in the peer group.
The £3.5bn fund has consistently increased its payout every year since 2020 and has made a total return of £16,570.57 on an initial £10,000 investment during the period.
Backed by analysts at the Fund Research Centre, the fund was described as a “global equity income fund where positioning is heavily influenced by the firm's macro-economic expectations and thematic insights”.
“At the same time, the team adheres to a strict dividend discipline with a view to ensuring that the portfolio delivers an income premium,” the analysts added.
It is managed by Jon Bell and FE fundinfo Alpha Manager Robert Hay, who demand that each stock pay an income, with a preference for those with sustainable dividends.
"The dividend-driven sell discipline also encourages the team to be contrarian and creates competition for capital," the analysts said.
Analysts at RSMR also rate the fund, noting that "equity income is a key strength at BNY Mellon", with this fund concentrating on companies with high-quality, sustainable earnings that offer yields above the market average.
They praised the fund for its performance in the low interest-rate environment of the 2010s, adding that, as interest rates move back toward more normal levels and investor focus shifts from high-growth, low-yield stocks, "the fund is well positioned to deliver stronger, more consistent returns and uncover new opportunities for investors".
Just above the BNY fund for total returns, Schroder Global Equity Income is the only portfolio recommended by an investment platform: AJ Bell.
It was just behind the VT Vanneck Global Equity Income fund, which came in third place with a total return of £17,293.48.
The £369m Schroder fund is managed by Simon Adler, who took over as head of value equities from Nick Kirrage last year, and Liam Nunn.
Analysts at AJ Bell, who placed the fund on their 'Recommended List', said: "The strategy benefits from an extremely disciplined and well-articulated investment process that has been in place for many years.
"The consistent application of the investment process is a central thread applied across the wider value team at Schroders and is a key element of the fund to generate an income ahead of the benchmark."
Fidelity Global Dividend – the most-backed global equity income fund among best buy-lists with three recommendations – failed to make the list above as it did not pay an above-average dividend over the five years.
Meanwhile, top dividend payers UBS Global Enhanced Equity Income, Allspring (Lux) Worldwide Global Equity Enhanced Income and Fidelity Global Enhanced Income (£2,801.25) failed to make an above-average total return and/or were unable to grow dividends each year.