Investec's King: Income is overplayed

Investec's Max King says investors have become too fixated on income generation at the expense of capital growth.

The co-manger of the £200m Multi-Asset Protector fund says managers should focus more on companies with growing yields than those with high yields. "Income has become overplayed; investors have given up on capital," he says. "Investors should want stocks with steady and growing dividends; companies which have strong cashflows which they do not throw away on stupid acquisitions. "The best income managers are those who spurn high yield and invest in good and growing yields." King also warns there is a danger the industry is spending too much time thinking about the historic econom...