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Best and Worst: UK equity income trusts

Nic Cicutti
Saturday 11 June 1994 23:02 BST
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THE past 12 months have not been good for investors in many UK income unit trusts.

After a strong performance for most of last year, more than a quarter of the 107 funds in this sector have seen a slide.

But not all was doom and gloom: the top 25 unit trusts in the sector increased the value of their investments by at least 6.7 per cent.

Among the top performers was the Friends Provident Stewardship fund, which earned its 14th place with an annual growth rate of 9.3 per cent. It also shows consistently good performances over three and five years.

But the NM Income unit trust, managed by Friends Provident since December, came 105th, losing its investors 3.8 per cent of its value over the year.

Stuart Dyer, managing director of the company's unit trust management operation, said: 'We do place our emphasis on income from UK equities and have stuck slavishly to this strategy. In doing so, our capital performance has suffered.

'We will continue to run it that way, but try to avoid some of the turkeys, in terms of share selections, that have bedevilled us in the past.'

Derek Bartlett, investment director of bottom performer, City Portfolio Financial, said: 'The fund was aimed at independent financial advisers but did not go as well as planned and only raised about pounds 100,000.'

Gartmore's UK Equity Income fund scraped in fourth from bottom, showing losses of 3.5 per cent over the past 12 months.

----------------------------------------------- UK EQUITY INCOME TRUSTS ----------------------------------------------- The best % 1 Glenfriars Higher Income. . . . . . 18.8 2 GT Income. . . . . . . . . . . . . .17.8 3 Jupiter Merlin Income. . . . . . . .16.8 4 L&C Income. . . . . . . . . . . . . 16.4 5 BWD UK Equity Income. . . . . . . . 14.1 The worst 103 Edinburgh Equity Income. . . . . .-3.2 104 Gartmore UK Equity Income. . . . .-3.5 105 NM Income. . . . . . . . . . . . .-3.8 106 Five Arrows UK Equity Income. . . -7.7 107 City Financial Portfolio Income. .-9.9 ----------------------------------------------- Figures show the percentage change in value as of 1 June for a lump sum invested one year earlier. Source: Hardwick Stafford Wright -----------------------------------------------

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