Tide turns on success of high yield strategies

Having outperformed for the previous five years, the success of high yield strategies has begun to e...

Having outperformed for the previous five years, the success of high yield strategies has begun to ebb away. According to UBS, low yielding stocks outperformed those with a high yield by over 12% over the year to the end of March. It has been notable that many funds with an income requirement have had difficulty in capturing the dramatic surge in share prices in low yielding sectors and particularly in resources stocks. Yields in these sectors are such that income funds find it difficult to overweight them – commodities super cycle or not. The next 12 months seem likely to represent a s...