Large-cap funds in the UK Equity Income sector have increased the concentration of their top ten holdings even as the UK's largest stocks begin to struggle, data compiled for Investment Week has revealed.
Capita's administration arm has written to a number of Arch cru investors asking them to return money from the redress scheme, after the payouts breached tax rules.
Dividend growth fell to its lowest level in over three years in Q2 as large caps struggled to maintain dividends in the face of strong sterling and a slowing global economy.
Fund managers are backing miners as a key income play this year, predicting the largest names in the sector will ramp up their dividend payouts after a poor first quarter.
Searching for income further afield
The rise in special dividends from groups including Vodafone has led to a record quarter for dividend payments, although dividend growth slowed excluding the telecom giant's bumper payout.
Premier's head of UK equities, Chris White, is forecasting a difficult year for UK equity investors as valuations become increasingly stretched.
Capita Asset Services is predicting a record year for UK dividends in 2014, despite a lacklustre period for dividend returns last year.
UK dividend payouts will contract this year for the first time since 2010 following a "disappointing" Q3 for income investors, according to Capita.