Consistent performance is a desirable objective for all investors, but perhaps nowhere is it more important than the world of income investing.
Unlike other equity investment styles, frequently focused on capital accumulation, the purpose of income investing is to build high dividends at low levels of risk, while at the same time protecting and enhancing the capital value.
Unfortunately consistency appears to be a rare phenomenon among income investors, with several high profile blow-ups in the space over the past year. Our performance has been an exception. The Royal London (RL) UK Equity Income Fund has outperformed its peer group for nine of the past 10 years. What explains this degree of consistency when so many others appear to struggle?