Revealed: The funds to buy for consistent income in 2017 Revealed: The funds to buy for consistent income in 2017

Damien Lardoux, Portfolio Manager at EQ Investors, has revealed the funds he likes for equity income in the current market conditions.

 Revealed: The funds to buy for consistent income in 2017

Lardoux picked his funds for consistent income generation

Lardoux commented that most of the funds he buys for income are, ‘vanilla, because we think the more vanilla funds are consistent in their ability to generate income. We don’t want to buy more specialist funds and then sell them a few months later, that incurs dealing costs for our clients apart from anything else, we also think it doesn’t help to generate consistent income.’
Amongst the income funds in which he is currently invested are Majedie Income, Threadneedle Income, and the JO Hambro UK Equity Income fund.

Read more: The FTSE 100 dividend that looks safe under ‘all scenarios’ 

The £941 million Majedie Income fund has a yield of 4.4 per cent and has more than doubled investors money over the past five years, being the 4th best performer out of 69 funds in the sector in that time period. The largest investments are BP, Legal and General and Aviva.

The £3.5 billion Threadneedle UK Equity Income fund has a yield of 3.8 per cent and has returned 85 per cent over the past five years, compared to 65 per cent for the average fund in the sector in the same time period. The largest investments in the fund are Glaxosmithkline, Astra Zeneca, and Imperial Brands.

Read more: Will the UK economy go into recession by 2020? 

The £2.9 billion JO Hambro UK Equity Income fund has a yield of 4.29 per cent. It is amongst the best performing funds in the IA UK Equity Income sector over the past year, returning 23 per cent, compared to 15 per cent for the average fund in the IA UK Equity Income sector in the same time period.

Over the past five years, the fund has returned 81 per cent, compared to 65 per cent for the average fund in the IA UK Equity Income sector in the same time period.
The largest investments are Shell, BP and HSBC Holdings.

Comments (0)