De Tusch-Lec: Telcos have turned a corner

The telecoms sector has turned a corner, with topline growth starting to emerge after 10 years of almost no growth, says Jacob de Tusch-Lec at Artemis.

The manager of the £22m Artemis Global Income fund says investors who have snubbed telecoms stocks over the last decade risk missing out if they do not start investing in the sector. "Stocks such as Vodacom in South Africa and MTS in Russia are generating yields of around 5% - as well as some growth," says de Tusch-Lec. "This isn ot something you see every day as an income manager; and it is attractive. Good European stocks such as SwissCom and Telefónica, which has a big exposure to fast-growing Latin America, both currently yield a steady 8%." He says the main drivers of growth are ...