Disclosure – Non-substantive Research
This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. With this commentary, Kepler Partners LLP does not intend to influence your investment firm's behaviour.
Income has for a long time been top priority for British investors. Stripped of the traditional source of income that a savings account once represented, bonds seem to be in a parlous state and with the wheels finally coming off the buy-to-let bubble, the range of options available to income investors is increasingly narrow.
Equities have for some time now been the beneficiary of this search for yield, and equity income funds have done very well as a result, attracting huge inflows. However, as we have highlighted in the past, many of these funds are investing in just a small range of companies and those companies are themselves increasingly stretching for yield - putting this refuge for the income seeker on somewhat thin ice.
With all this behind us, and mounting uncertainty about the current rally in front of us, we search above and beyond only equity income sectors and look for a sensible place to find income...
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