Current climate calls for diversified approach

With a strong equity bull market that is nearing two and a half years since the trough, one might ex...

With a strong equity bull market that is nearing two and a half years since the trough, one might expect that equity income funds would have suffered relative to the more growth oriented sectors. However, this sector has been boosted by the good performance of a number of shares in the traditional and less traditional equity income sectors. We are now in a period of low returns, when double-digit returns, such as those recently enjoyed by equities, will be considerably rarer than in the 1980s and 1990s. In this context, a reasonable weighting in higher yielding equities. Traditionally...