The BlackRock UK Income and Schroder Income Maximiser funds have hit Sanlam Private Wealth’s latest Black List of underperforming income funds.
The BlackRock fund, run by Mark Wharrier, “has again not quite escaped the clutches of the Black List”, says the update from Sanlam.
“With performance now top of the Black List for both of the most recent discreet years, the manager is now in a good position to take his fund out of the bottom 14 if he can continue to perform,” the report states.
The Schroder Income Maximiser fund has also hit the list, despite getting the highest yield of any fund in the study, returning 8.4 per cent in dividend yield in 2015. It’s place on the list is a hangover from last year, when it had the worst performance.
Others on the Black List include the Scottish Widows UK Equity Income Fund, the HSBC Income Fund and the F&C UK Equity Income Fund.
The study looks at funds in the IA UK Equity Income sector and funds are ranked based on seven different criteria, including performance, volatility and income distributed. The most recent performance is given a higher weighting in the ranking.
David Taylor and David Horner’s PFS Chelverton UK Equity Income Fund has been knocked off the top spot in the White List of top performing funds.
Taking pole position this year is the Unicorn UK Income Fund, run by Fraser Mackersie and Simon Moon.
“Both funds have a focus on mid-sized and smaller companies, which has helped them outperform their generally larger company focused peer group, as larger companies continued to lag their smaller peers in the second half of the year.
“In addition to benefiting from the smaller company tailwind, both funds are also in the top quartile of the study for income generated over the five year period,” says the report.
Michael Clark’s Fidelity MoneyBuilder Dividend fund moved the highest up the White List, having previously been in the Grey List of mid-performing funds.
“Hugh Yarrow’s Evenlode Income Fund also delivered better performance in the second half of the year which helped it re-enter the White List after only six months of exile, but a comparably low level of income generated has prevented the fund climbing higher in our rankings,” states the report.
Other funds in the White List include the Troy Trojan Income fund, which is now in the top half of the list, and the Standard Life Investments UK Equity Income Unconstrained fund, which remains in the middle of the White List.
“Strong recent performances in 2015 saw the Miton Income Fund and the Santander Equity Income Fund enter the White List, with the latter having the highest historical twelve-month yield of any White List fund,” states the report.