Fears grow for equity income payouts as more cuts forecast

clock •

J.P. Morgan, F&C, Henderson New Star and St James's Place are among the fund management groups expecting to cut dividends on their UK equity income funds by up to 25% in the coming year.

The news follows the announcement from Artemis last week it would be cutting the income yield on its £2.4bn Income fund by 25% per annum. The £260m JPM Premier Equity Income fund is expected to see its dividend fall from 5.55% to 5.14% per annum. Meanwhile, Hilary Aldridge, manager of the £52m F&C Growth and Income fund, says investors may see a fall of around 20%. St James's Place is also anticipating a 20-25% cut on its £356m Equity Income fund, managed by Schroders' Nick Purves. This is in line with the same cut on the Schroder Income fund, also co-managed by Purves. The £203m H...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment