Rensburg's Morton confident of a 6% yield for income trust

Uncertain UK dividend outlook does not dampen Equity Income manager's confidence

Rensburg UK Equity Income Trust manager Colin Morton remains confident his fund can deliver a yield of over 6% at its August year end, despite the uncertain outlook for UK dividends. While the manager accepts the fund's payout for the year is likely to be cut, Morton says the "disappointing" reduction is unavoidable given the severity of the downturn. However, Morton says with the sliding yields seen on cash and government bonds, the premium equity income portfolios offer should be attractive for investors awaiting a market revival. "Even taking into account the dividend cuts we have ...