How to minimise risks in income investing

Andrew Herberts of Thomas Miller Investment

Andrew Herberts of Thomas Miller Investment

The market for income funds is more and more crowded, which speaks to both the underlying attraction of the asset class and the willingness of fund houses to play to that demand.

The subsequent marketing reinforces the demand, leading either to increased demand from funds pushing up the underlying assets or income funds' style drifts (or discipline breaks down).   In theory, investors should be agnostic between income and capital as a source of return. But as we are aware, the taxation environment does skew the outcome and a level of tax arbitration can favour one or other type of return depending on individual circumstances and the prevailing tax regime.   The undeniable fact that a large proportion of the FTSE 100 returns derive from dividend income (AJ Bell...

To continue reading this article...

Join Investment Week

  • 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

Join now


Already an Investment Week


More on UK

Link Group now expects headline dividend growth of 2.4% to £96.3bn in 2022.

UK dividends jump to £37bn in Q2 as the pound stumbles

Second-largest payout on record

clock 26 July 2022 • 2 min read
Chris Brightman is the CIO and CEO of Research Affiliates

Research Affiliates: Real interest rates will remain higher even after inflation is tamed

Tougher conditions for capital markets

clock 22 July 2022 • 4 min read
The survey found that UK equities remain the most popular asset class

Fund investor sentiment falls to record low

Lower than Q3 2020

Elliot Gulliver-Needham
clock 20 July 2022 • 1 min read