Should income hunters turn to miners?

UK INCOME

Investors have turned too bearish on miners and should be looking closely at the sector for income opportunities despite a historic lack of yields, Aviva's Chris Murphy has said.

The manager of the Aviva UK Equity Income fund said miners have been left behind as equity markets have rallied, with many of the stocks among the worst performers of the year so far. Such is the antipathy towards the sector that yields have risen, and Murphy said savvy investors could buy in to the unloved sector now to capture higher than average payouts. "Miners are as unloved as they have been for some time," Murphy said. "We believe investors are being too short-termist and ignoring the positive management changes that have occurred across the sector." He highlighed Rio Tin...