Investec's Hutchins backs asset manager income plays

Blake Hutchins, manager of the Investec UK Equity Income fund, has revealed a number of financial services companies are among his favoured holdings to provide sustainable, growing dividends.

Looking more closely at the sector, Hutchins said he is still not convinced UK bank dividends are sustainable, but he is more positive on other companies in this space, including asset manager Schroders. "I do like asset management businesses such as our own but, clearly, I cannot invest in Investec," he said. "We like Schroders, which is offering a 4% dividend yield and has very little balance sheet risk. We also like companies such as Hargreaves Lansdown, St James's Place and Legal & General, which is moving more towards being an asset management business. The yields here are superi...