Which equity peer group is winning the popularity contest?

SECTOR REPORT

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As investors flee risk asset classes, one sector is bucking the trend, writes Morningstar OBSR's Oliver Kettlewell.

Equities remain an unloved asset class having suffered consistent annual outflows post-2008 even in the face of numerous risk-on rallies since the credit crisis. But one of the few equity peer groups to buck the trend has been global equity income and the popularity of the sector led the IMA to create a Global Equity Income sector this year. Investors have favoured global dividend funds’ sturdy qualities of regional diversification and lower volatility in returns. Aside from lower risk, dividend funds have also delivered in terms of returns. The group of funds in the IMA Global Equity In...

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