Why I am optimistic on equity income funds

EQUITY INCOME

Lee Robertson, CEO of Investment Quorum, explains why he is optimistic about the outlook for UK equity income strategies.

With low interest rates and stubborn inflation figures impacting investors, many are turning to an equity income strategy. Income strategies are seen as attractive for several reasons but can broadly be summed up as higher yields, inflation protection and track record. The higher yield is being achieved as dividend paying equities are currently outstripping that available through traditional fixed income products and indexed equities, albeit with a greater degree of risk in some cases. Inflation is seen as a growing and constant threat, so equity dividend payments potentially meet this r...