"With some exceptions, it appears that funds that operate in efficient markets such as UK Equity Income are unable to justify high charges, which appear to have a detrimental effect on performance. With information being so easily obtainable it is not clear what benefits an investor would derive by choosing a higher-charging fund, indeed it would be interesting to know exactly how investors’ money is being spent and how this is justified."
Oliver Clark-Williams, analyst at FE, bemoans the high cost of many UK Equity Income funds
"Everyone still seems to be going on about income, but as far as I’m concerned it’s now yesterday’s game. When you’re at the bottom of the cycle and these companies are cheap and are also paying a decent yield, you get a nice overall return, but now they’re anything but cheap."
Leigh Himsworth, manager of the CF Eden UK Opportunities fund, thinks equity income is yesterday's game
"July’s top-10 funds clearly show that investors' interest in seeking and exploiting opportunities from outside of the UK shorelines shows no sign of diminishing."
Andy Parsons, head of investment research at The Share Centre, says investors are increasingly looking abroad for returns
"The Russian equity market is very close to historic lows in its valuation, both compared to its own history and to other emerging markets. This is in spite of the fact that the economy has been growing steadily since the crisis and has achieved record low inflation and unemployment levels this year."
David Reid of the Eastern European Trust says Russia is the place to be
"It’s a developed market with high-quality companies that are quite likely to capture long-term structural trends, so investing now with a 10-year view could be a good decision. The drive to emerging market growth is relentless and a lot of Japanese companies are capitalising on growth in Asia in particular."
Richard Troue, investment analyst at Hargreaves Lansdown, says Japan holds great promise
"The Russian market is currently trading at just 4.95 times earnings, putting it at a 49 per cent discount to the emerging markets average. We consider the scale of this discount to be wholly unjustified and believe that the market has rarely been more attractively priced."
Robin Geffen, manager of the Neptune Russia & Greater Russia fund, says Russia is cheap
Investment barometer: UK investors look abroad for returns
31 August 2012
Amid growing concern over booming demand for equity income stocks in the UK, some investors are starting to look further afield for their returns.
Group Editor, FE Trustnet
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