Top Equity Income Funds Bought and Sold in 2025

Equity income funds experienced a variable performance in 2025, marked by fluctuating inflows and outflows across both global and UK strategies. Fund managers and analysts closely monitored these changes, focusing on those funds that garnered or lost significant capital.

Top Equity Income Funds in 2025

Several funds attracted notable inflows, with Artemis Global Income leading the pack. This fund’s assets surged from £1.6 billion in 2024 to £4.2 billion in 2025. Its remarkable growth was fueled by nearly £1 billion in performance gains and an additional £1.6 billion in net new investments.

Co-managed by Jacob de Tusch-Lec and James Davidson, Artemis Global Income has consistently outperformed its peers over various timeframes, delivering a substantial 247.3% return over the past decade, compared to the sector average of 151.6%.

Other High-Performing Funds

• Fidelity Responsible Global Equity Income: This fund increased its assets from £146 million to £276 million, benefiting from £20 million in performance gains and £113 million in inflows.
• Fidelity Global Dividend: Another success story, it grew from £3.2 billion to £3.8 billion, supported by £463 million in performance and £112 million in new investments.

Funds Facing Withdrawals

In contrast, several funds struggled to retain investor assets. BNY Mellon Global Income experienced a minor growth to £3.4 billion, but £364 million was withdrawn by investors, overshadowing £456 million in performance. Likewise, Baillie Gifford Global Income Growth saw a decline from £569 million to £359 million, losing £213 million in net withdrawals despite holding reputable investments in companies like Apple and Microsoft.

UK Equity Income Sector

The IA UK Equity Income sector had a mixed year, with only two funds surpassing £100 million in net inflows. TM Redwheel UK Equity Income was the standout, increasing its assets to £1.3 billion through £230 million in performance gains and £358 million from new investors. This fund, managed by Ian Lance and Nick Purves, holds a five-star FE fundinfo Crown Rating for its effective investment strategy.

• Vanguard FTSE UK Equity Income Index: This passive fund grew by £500 million, largely through £386 million in performance gains and £192 million in net inflows.

Significant Withdrawals in UK Equity Income

On the downside, CT UK Equity Income saw its assets decrease from £2.9 billion to £2.2 billion due to significant investor withdrawals of £886 million, despite achieving £239 million in performance gains. Similarly, Artemis Income experienced £409 million in outflows, even as it added nearly £1 billion through performance. Managed by a team including Adrian Frost, this fund maintains a strong reputation within the market.

HL UK Income also faced challenges, recording £307 million in withdrawals against £258 million in performance gains, indicating a notable shift in investor sentiment.

Conclusion

Overall, 2025 was a year of contrasts for equity income funds in both global and UK markets. While some funds thrived, attracting significant new investments, others struggled to retain capital amidst changing market dynamics. Analyzing these shifts is vital for future investment strategies.