UK Equity Income Funds
The Santander Equity Income Trust has had a good first half of the year, with a total return of 15.8% versus the FTSE All-Share Index of 12.9%. This outperformance has resulted in the Fund being one of the top funds in the very competitive IA UK Equity Income sector year to date and has also led to the Fund being top quartile across a 1, 3 and 5 year period.
Due to persistently low interest rates and disappointing returns from traditional income-generating investments, income funds have become increasingly popular in recent years. Market conditions continue to adversely impact savers, and this is likely to be the case for the foreseeable future. Many savers, especially those approaching retirement, are turning to equities for better returns and a means of making their money work harder for them.
Who should invest in an equity income fund?
The profile of a typical equity income investor is becoming broader. Traditionally, they were favoured by investors who wanted a regular and rising income, with capital growth being a lesser requirement. Now, they are also considered by those focused on capital growth who reinvest any income generated for better long-term returns. Other investors want a solution that offers the best of both. Equity income funds are particularly good at meeting the needs of older investors because of the potential for capital growth and a rising income.
The Santander UK Equity Funds
We offer two UK Equity Income Funds, both managed by the same award-winning team:
Equity Income Unit Trust
The objective of the Santander UK Equity Income Unit Trust is to provide an above-average income versus the IMA sector average, without guarantees, together with the potential for capital growth over the longer term.
Enhanced Income Portfolio
The objective of the Enhanced Income Portfolio is to pay out an enhanced level of income, without guarantees, as well as to provide growth prospects over the longer term.