Weak sterling could enhance the strong health of FTSE 100

UK INCOME

Last year was a difficult one for the equity income sector with many historically high-yielding sectors and companies reducing or cutting dividends altogether.

This resulted in many income funds reducing their planned distributions. With interest rates at historically low levels, the need for investments that generate a steady and attractive income stream has never been greater. We have focused on the stocks and areas of the market offering good yields and growth, while having exposure to some very attractively valued low-yielding stocks that delivered substantial capital gains. This gave us more capital to recycle into higher-yielding stocks during the year. In terms of outlook, we are cautious; the low yield on the UK market does not of...