SLI's Robertson: Why I have 10% in miners

Standard Life Investments' Karen Robertson is running a 10% position in miners within her UK Equity High Income fund despite the lack of yield historically available in the sector.

The manager is backing miners to outperform following record rises in the price of a range of metals such as gold and silver. Robertson, who has run the £880m fund since 1995, said miners were the ‘cheapest' sector in the market, and she is overweight compared to peers in the income space. She said: "You are going to see higher cash generated than expected as during the credit crunch a lot of planned mining capacity had to be shelved, so there are buckets of cash on miners' balance sheets. "We believe the sector is the cheapest in the market and is positioned to outperform five or ...