The Lincoln Income and Sovereign Income funds top Principal Portfolio Management's Black List, a ta...
The Lincoln Income and Sovereign Income funds top Principal Portfolio Management's Black List, a table of the worst-performing UK Equity Income funds over five years.
At the other end of the quality scale, Rathbone Income, Friends Provident Stewardship Income and Liontrust First Income top the White List as the most consistent funds over the period.
The latest update to the list, which takes in performance up to the end of June 2003, sees the Lincoln and Sovereign funds extend their membership of the Black List 'Hall of Shame' to two and two-and-a-half years respectively.
The Black List, which takes in the bottom 12 funds on a range of measures including dividend yield, net income over five years, total return and volatility, also features Norwich UK Equity Income, M&G Dividend and JPMF Premier Equity Income.
However, Principal noted the short-term performance of the M&G fund has improved recently, while the JPMF portfolio is expected to perform better with the recent appointment of Christopher Llewellyn following the departure of James Inglis-Jones.
'The surprising thing about the Black List is that as much as £2bn of savings remains in funds that have consistently failed to deliver value to investors and that are an embarrassment to the household names that manage them,' said Tim Cockerill, senior investment manager at Principal.
The White List, Principal's picks for most consistent funds, is headed by the Carl Stick-run Rathbone Income portfolio. The fund has topped the list since July 2002, with the second highest net income over five years to 30 June, an above-average dividend yield of 4% and below-average volatility of 4.2%.
Cockerill said Jeremy Lang, manager of the Liontrust First Income fund, has delivered strong returns this year through a contrarian approach that led him to focus on value in out-of-favour small and mid-cap companies.
'The yield on this fund is lower now than in January as a consequence of Lang's decision to move to taking the annual management charge from income instead of capital,' he added. 'We think investors in this fund for total return will applaud this purist approach.'
Credit Suisse Alpha Income entered the White List for the first time in July after clocking up its five-year track record.
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