New challenges for income funds

For those curious enough to look, the evidence is there in black and white - Autif's UK Equity Income sector has not been putting on a good show. Income levels have dropped and now appear to be stagnating at the lower end of the spectrum (see table). What is more, over the year to 31 March 2000, average total returns were -3.83% - worse than the -2.41% achieved in the year to 31 March 1999. There is no denying those managing equity income funds face a tremendous challenge and there are two key reasons why this is the case. The first goes back to 1997, when the Government announced its d...