How will the Glencore IPO impact the UK dividend market?

Graham Ashby Head of UK equities, LV= Asset Management One of the principal reasons many UK equity income funds have underperformed the FTSE All-Share index in recent years is due to a significant underweight position in the mining sector. This has been a mistake as, despite the recent retracement of share prices, the mining sector has outperformed by 9.0% over one year and by a similar 8.9% pa over the past five years to end April 2011. An excuse being the mining sector has not yielded much in the way of dividends. Given the preference by management on returning cash to shar...