The shock and uncertainties brought about by COVID-19 have resulted in many businesses around the world deciding to reduce the distributions they make to shareholders. As equity income investors, with clients who are attracted to the combination of regular cash windfalls and lucrative capital growth over time, this is particularly relevant. Martin Cholwill, Senior Fund Manager at Royal London Asset Management shares his views surrounding the impact that this could have on income.
Past performance is not a reliable indicator of future results. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author's own and do not constitute investment advice.
