From global to income: the sectors dominating portfolios

By James Yardley on 4 March 2026 in Equities, Income investing

Where are UK investors putting their money? Are equities more in demand than bonds? What are the most popular sectors – and how has that changed?

Here, we use FundCalibre and Investment Association data to reveal the categories catching investors’ eyes and suggest funds worth considering.

The top three sectors on FundCalibre

We’ll start by looking at the most popular sectors on FundCalibre over the past 90 days – and past year* – then highlight some of our favourite portfolios.

The top three sectors which have been the most popular over both time frames are: Global; UK Equity Income and Global Equity Income. Interestingly, the Mixed Investment 0-35% Shares has been the least popular over three and 12 months*, suggesting investors have a greater risk appetite.

This preference for equities aligns with broader industry data. According to the latest Investment Association statistics, there is currently £1.6 trillion of funds under management, with equities accounting for the majority of assets**. Equities represent 56.1% of total funds (£1.076 trillion), compared with 17.4% in mixed assets (£333.7 billion) and 15.1% in fixed income (£289.3 billion)**. The weighting towards equities has increased slightly in recent years, likely reflecting strong global stock market performance.

1. Global Equities

Global funds have been the most popular over both recent months and the past year*. It’s because they provide diversified exposure to some of the world’s best companies. The approach taken by global funds will depend on their remit. For example, some will focus exclusively on developed markets, while others may also embrace emerging areas.

This popularity is mirrored in Investment Association data. IA Global is currently the largest sector by assets, with £241 billion under management – almost £100 billion more than the next largest sector**. This underlines just how dominant global investing has become for UK investors, both in terms of interest and capital allocation.

There are many portfolios we like in this sector. For example, BlackRock Global Unconstrained Equity is a concentrated, high conviction fund that filters out short-term market noise. The managers, Alister Hibbert and Michael Constantis, have exceptional track records and benefit from the backing of a large investment house.

Another fund worth considering is the Capital Group New Perspective fund. It has a unique structure in which nine named managers each run a part of the portfolio in their own way. Their best ideas, which currently include Microsoft, AstraZeneca and Meta Platforms***, are then blended to produce a diversified portfolio.

2. UK Equity Income

Funds in this area enable you to enjoy a regular income by investing in dividend-paying companies that are listed on the London Stock Exchange. It’s a traditionally popular sector because income streams are needed by people at all stages of their lives, whether they want to make ends meet or are approaching retirement.

Although UK-focused sectors no longer dominate asset rankings, they remain an important part of investors’ portfolios. IA UK All Companies was historically the largest sector, driven by UK investors’ preference for their ‘home’ market. While it has been overtaken by global funds and has been the worst-selling sector since 2022**, it still contains many well-established companies and experienced fund managers. It’s also worth remembering that many London-listed businesses generate a significant proportion of their revenues overseas.

Rathbone Income is a multi-cap UK equity income fund that gives investors exposure to a concentrated portfolio of companies with high-quality, visible earnings. Unsurprisingly, its largest holdings include established dividend-paying giants with reliable cash flows, such as HSBC, GSK and British American Tobacco****.

There’s also Janus Henderson UK Responsible Income, which avoids companies that are considered to be involved in business activities that may be environmentally and/or socially harmful.

Its managers, Andrew Jones and David Smith, believe companies with robust free cash flows and strong balance sheets are well-positioned to navigate the uncertain economic environment.

3. Global Equity Income

Funds in this sector will have similar characteristics to UK Equity Income funds, but they’ll simply have a much broader potential investment universe.

One suggestion is Guinness Global Equity Income. It aims to provide investors with income and long-term capital growth from a portfolio of around 35 equally-weighted stocks. We believe the managers’ focus on first choosing the right companies, instead of filtering by dividend yield, gives them a better chance of finding hidden gems.

Elsewhere, the JPM Global Equity Income fund is regarded as a core holding. It invests across the world, including emerging markets, and favours large to mega-cap stocks. In their latest update at the end of January 2026, the managers revealed their most overweight positions were currently financial services, retail and utilities***.

*Source: FundCalibre website data, at 24 February 2026

**Source: Investment Association, December 2025

***Source: fund factsheet, 31 January 2026

****Source: fund factsheet, 31 December 2025