Global equity income funds are becoming more popular with investors who want broad market exposure but with the ability to collect dividends throughout the year.
But the funds in the IA Global Equity Income peer group vary. While some focus on paying income, others are more balanced, aiming to provide more of a mix between dividends and capital gains.
In this series, Trustnet is looking at the income funds that pay out the most to investors. Having previously looked at the UK, here we tackle the global equity income sector.
As a collective, the peer group pays less than UK equity income funds, understandable considering the yield on the MSCI World index is 1.56% but the FTSE All Share pays 3.13%.
Of all funds that have paid dividends for the past five years, the average paid out by global peers is £1,839.48 while UK funds generally pay around £800 more.
However, there are some supranormal payers among the IA Global Equity Income peer group. UBS Global Enhanced Equity Income tops the list, paying out £5,585.90 over the five years to the end of 2025.
Grzegorz Ledwon has managed the £132m fund since 2021, with Jie Song joining him in 2024. They aim to generate at least 110% of the income from the MSCI AC World index over 12 months by investing in dividend-paying companies and through call option premia.
It has been the largest dividend payer by some margin over the past five years to the end of 2025 but has not garnered the assets of other enhanced strategies.
Allspring (Lux) Worldwide Global Equity Enhanced Income (£2,967.30 payout) and Fidelity Global Enhanced Income (£2,801.25) were a distant second and third respectively but have significantly more in assets (£1bn and £438m respectively).
The latter is recommended by analysts at FE Investments, who said the covered-call strategy employed is "more selective" and "more thoughtful" than its peers.
"The extent to which stocks are overwritten with derivatives depends on valuation and short-term outlook, which we believe adds value by preserving upside potential where appropriate," they said.
David Jehan and Vincent Li are responsible for implementing the covered-call overlay while managers Fred Sykes and Jochen Breuer oversee stock selection. They are heavily underweight the US (8% of the fund versus 63% of the MSCI AC World) and have a strong preference for higher dividend-paying markets such as Europe and the UK.
| The highest dividend-paying IA Global Equity Income funds | |
| Fund | Dividends paid over 5yrs |
| UBS - Global Enhanced Equity Income | £5,585.90 |
| Allspring (Lux) Worldwide - Global Equity Enhanced Income | £2,967.30 |
| Fidelity Global Enhanced Income | £2,801.25 |
| Premier Miton Global Sustainable Optimum Income | £2,764.80 |
| Schroder Global Equity Income | £2,543.45 |
| Vanguard Global Equity Income | £2,304.71 |
| River Global RGI Global Income and Growth | £2,265.38 |
| VT Vanneck Global Equity Income | £2,230.62 |
| Artemis Global Income | £2,161.48 |
| Vanguard FTSE All World High Dividend Yield UCITS ETF | £2,002.69 |
Source: FE Analytics
Premier Miton Global Sustainable Optimum Income is fourth. Managed by Neil Birrell, Geoff Kirk, Benji Dawes and Luke Smith, the fund aims to achieve a dividend yield of 6% per annum and invests at least 70% of its assets in companies that are environmentally and/or socially sustainable.
It currently yields 6.49% and is the smallest fund in the table above with assets under management of just £23m.
Schroder Global Equity Income is the first fund on the list that does not use a covered-call strategy, paying out £2,543.45 over the past five years. The £360m fund is run by co-managers Simon Adler and Liam Nunn, who are part of the Schroder value equities team.
Analysts at AJ Bell have included the fund in the platform's Recommended list, noting that the "consistent application of the investment process" has "been in place for many years" and gives them confidence in the portfolio.
"The team take positions that are very different to the benchmark and therefore the fund could be volatile over short periods and investors may need to be patient," they noted.
Vanguard is represented twice in the table above, with its active Vanguard Global Equity Income and passive Vanguard FTSE All World High Dividend Yield UCITS ETF represented.
The active fund has paid out around £300 more than its index-tracking counterpart in the five years to the end of 2025 and comes in just behind the Schroder fund.
Analysts at RSMR said the house is renowned for passive investments but is one of the world's largest active managers and can use both its in-house and external teams where appropriate. This fund is run by Vanguard's quantitative equity team alongside active managers at Wellington, who each have a 50% split of the portfolio.
"We believe that the combination of Vanguard's in-house team and Wellington, and the cost effectiveness of this product, provides an attractive option for investors," they said.
Elsewhere on the list, Artemis Global Income has attracted the backing of analysts at Titan Square Mile, who have given the fund an 'A' rating.
Headed by Jacob de Tusch-Lec and FE fundinfo Alpha Manager James Davidson, the fund is the largest active strategy in the table above with £6.2bn in assets under management.
The fund is built around a core of reliable quality names with cyclical stocks and more risky special situations also included at smaller weightings. high-conviction strategy that at times may contain concentrated positions
"It is an all-cap fund that aims to blend successful stock picking with an understanding of the macro picture," the analysts said, adding that it does not "exclusively rely upon the typical higher yielding mega-cap names to meet the income objective".
While investors "should expect a bumpy ride", overall it provides "good diversification benefit to more traditional income strategies" as it is a "high-conviction strategy that at times may contain concentrated positions".