Claire Long, manager of the Premier Energy and Water trust, explains why the utility sector is one of the few that is successfully combining high yields and dividend growth.
Over the past ten years to the end of July, the MSCI World Utility index and the MSCI World index in sterling terms have produced a very similar capital return of around 75%. In total return terms, however, the utility sector returned almost 170%, compared with 135% by its parent. Look at almost any region and in total return terms the picture is the same or better over this period. US utilities have produced 75% more than the S&P 500, emerging markets utilities have returned 110% more than their parent, and in the case of UK utilities the differential has been even more marked, with ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
