Which products should investors go for?
Fund value plunges 94% over three years
The sustainability of UK equity income streams has been called into question, with underlying dividends across the market falling by almost 3% on a constant currency basis during Q3 – the worst quarterly performance for three years.
Concerns raised following Equity Income fund closure
Driven by hopes of Brexit resolution
Top tips for navigating choppy waters
There has always been a demand for income, but in the past decade, the hunt for yield has become more challenging due to the ultra-low interest rate environment.
It is widely discussed that the UK equity market is cheap and recent foreign takeovers suggest there is value at home.
Brexit discount means strong stocks are cheap
Recent history has been challenging for income-seeking investors.
Mumford gets co-manager
It says something about the challenges the UK market faces when Brexit is not the biggest risk investors fear.
The London IPO market has been subdued since the second half of 2018, as a result of increased market volatility.
Which funds made the cut?
Traditional sources of investment income are facing structural issues, while the alternative income sector is booming.
We expect to see continued market volatility and macroeconomic uncertainty in the UK throughout 2019, not least due to Brexit.
Industry Voice: A market led by the large commodity stocks over the past few years has seen 'revenge of the index', making it difficult for all-cap managers to keep pace. Are we now on the precipice of a reversion of this?
Designed to help schedule payments
As UK equity income investors, one sector we have found attractive is data or information service providers, which offer services to either corporates or consumers.
Equities saw a relatively indiscriminate sell-off in Q4 of 2018, with increased volatility and widening valuation spreads.
Equity markets have seen a setback over the past couple of weeks, led by the US, and this has also hit the UK equity market.
One of the reasons income investing has done so well in the long run is that it is a form of value investing.
With 55% of FTSE 100 dividends forecast to come from just ten companies in 2018, it is not surprising many UK equity income strategies are disproportionately invested in a relatively small number of large-cap stocks.
Despite two years passing since the Brexit referendum, we are still some way from knowing how the UK's relationship with the European Union (EU) will evolve in the next few months and years.