Not so cyclical: Can fund groups' dividend drive succeed?

The cyclicality of listed asset management businesses has been called into question as big names spring dividend surprises and attract the interest of UK equity income managers.

Traditionally highly sensitive to stock market movements because of their reliance on equity products, a number of asset managers beat expectations last week in their commitment to producing income for shareholders. Having been buoyed by the multi-year equity market rally, fund groups are attempting to recast themselves as less cyclical prospects: Schroders and Jupiter both hiked their interim dividends by 50%, while St James’s Place upped its own payout by 40%. In a sign, perhaps, of the difficulty of the challenge, the sector sold off last week, as weaker earnings and the opportunit...