Last week we reported that despite the steep headline fall in the total dividends paid by UK companies over the first quarter, among UK equity income funds there are still hidden gems, in particular among smaller nimble funds. These include PFS Chelverton UK Equity Income Fund (GB00B1FD6244), which broker Killik has recently initiated coverage of with a buy recommendation. Read more on this
- Strong long-term performance
- Attractive yield
- Portfolio diversification
- Experienced managers
- Higher than average TER
"This is a result of our search for funds with a smaller companies bias that are not capacity constrained, and our keenness for income generation in a low-yield environment," says Mick Gilligan, head of research at Killik. "It is increasingly important, when searching for yield, to consider the potential for income to grow. A carefully selected portfolio of UK medium and smaller companies should provide better prospects for growth, of both income and capital, than that of the wider stock market on a long-term basis."