fund manager views

Long-term asset return studies, such as the Barclays Equity Gilt Study, confirm that dividends - and in particular dividend reinvestment - are the drivers of long-term total returns from UK equities.

Outlook also bodes well for value investors

Investment grade remains attractive

Caused by three factors

Europe's economic recovery continues to broaden and deepen. The ongoing expansion is supported by a synchronised global growth backdrop with few medium-term concerns coming from the international trade impulse.

'Unjustly punished in sell-off last year'

The market for income funds is more and more crowded, which speaks to both the underlying attraction of the asset class and the willingness of fund houses to play to that demand.

Our UK outlook has been steadily downgraded over the last 12 months.

Brexit proving a headwind

The healthcare sector has been under a black cloud since the US Presidential Election last year, driven by concerns over drug pricing.