Why UK income investors 'should exercise caution'

clock • 2 min read

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.

Traditional yielding assets such as cash and fixed income, which have been a staple in income portfolios, have witnessed yields fall dramatically.  Understanding the 'technological revolution in healthcare' This means income investors are being pushed towards higher-risk areas of the market to meet their income needs. More recently, we have observed a yield curve inversion in several fixed income markets - typically a precursor to recession and a cause of elevated volatility.  While certain high yield areas within the UK fixed income market can be attractive, it is UK equities that...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Evelyn Partners drops Ninety One UK Alpha for Fidelity Special Sits
UK

Evelyn Partners drops Ninety One UK Alpha for Fidelity Special Sits

Core Managed Portfolio Service rebalance

Beth Brearley
clock 10 December 2024 • 1 min read
Odyssean IT bets on surge in M&A among UK equities
UK

Odyssean IT bets on surge in M&A among UK equities

Half-year results

Beth Brearley
clock 28 November 2024 • 2 min read
UK dividends plummet by 8.1% in Q3 as mining sector struggles
UK

UK dividends plummet by 8.1% in Q3 as mining sector struggles

While mid-caps grow

Linus Uhlig
clock 24 October 2024 • 2 min read
Trustpilot