Capex for industrials to be significant theme in 2011

ON UK INCOME

AXA Framlington's Jamie Forbes-Wilson believes there will be interesting income opportunities in the mid-cap arena this year.

The last few years have been difficult for income-seeking investors, with interest rates at historic lows. The need to find new sources of income makes blue chip equities, currently yielding 3%+, an attractive option. As we expect dividends to increase, while interest rates rise more modestly, over the medium term, our view favours equities over fixed income, assuming inflation does not rise significantly from here. Outside stalwart FTSE 100 dividend payers, we see interesting income opportunities in the mid-cap arena, from within the FTSE 350 index. To us, the outlook for capital exp...