Analysis

As its name suggests, the UK equity income sector provides exposure to companies that pay above-average dividends (the criteria for inclusion in the IMA UK equity income sector is a dividend yield of at least 110% of the FTSE All Share index yield).

Investor keenness in sector pushes prices up sharply but long-term case remains intact

Top five funds in IMA Strategic Bond sector all return above 4% over one year against an average of 23.1%

As we enter 2010, one of the greatest unknowns for UK investors is the outcome of the forthcoming election and the extent of the tightening policies thereafter.

With some justification, investors took an increasingly positive view of the prospects for most Asian markets last year.

Investors seem more than happy for the market to continue moving higher and the latest investor sentiment surveys indicate the bullishness among investors is now at levels not seen since 2007.

It is very hard to make any convincing predictions after such a turbulent, but ultimately very rewarding year in 2009.

As 2008 rolled into 2009, global investors were still recovering from the most traumatic of years, felt most acutely perhaps in emerging markets.

Global listed infrastructure is well positioned in this environment as the asset class offers investors sustainable growth and inflation protected income streams.

Dividend payers are likely to command a premium in 2010 as dividends and dividend growth are likely to remain muted given continued low payouts from key areas of the market.