Income managers battle for yield post-BP

Despite unprecedented cash injections by governments in March 2009, the 12 months to September 2010 have seen increased levels of volatility.

With the release of a number of less favourable macroeconomic indicators and the bailout of Greece by the rest of the EU, investors started to question the sustainability of economic recovery and future growth. As a result, the market has remained heavily influenced by sentiment – this time, whether the UK economy would hit a double-dip recession or not. For nearly three years since the credit crisis first got its grip on markets, it has been hard for UK equity income fund managers, even those most dedicated to bottom-up investing, to ignore macro factors. Managers increasingly accept...