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The only "free lunch" that investors will ever get is the ability to significantly diversify their portfolios, according to Legal and General Investment Management's (LGIM's) Justin Onuekwusi, who said the high number of small positions across his portfolios...

Low interest rate environment will benefit dividend income

Markets change, but human nature does not. This year's pandemic-induced swings in sentiment have created opportunities to buy best-in-class cyclical businesses in unloved industries.

Mainstream investors are still looking elsewhere

The pet care market offers moderate but stable growth prospects, helped by a constant rise in pet ownership and increase in spending per pet.

How should investors behave in the current environment? There are many studies that show high yielding shares have historically provided superior total returns compared to the broad UK market.

Firstly, equities. The companies we invest in continue to pay their dividends, even when many others are cutting or suspending theirs and/or raising equity.

The market response first, to the Covid-19 crisis, and second, to the huge stimulus packages announced to offset it, has been astonishing.

As multi-asset investors focused on income generation, we do not think going against global central banks is prudent, and until we see a meaningful turnaround in economic data, our preference for adding to risk is likely to remain for debt over equity...