BMO's Gary Potter predicts UK Equity Income sector will be top performer next year

Taking cautious approach

Co-head of BMO Global Asset Management’s multi-manager team Gary Potter has predicted the Investment Association’s UK Equity Income sector will be the best performer next year.

In a webinar, the co-head, who announced his retirement last week (15 November), said income was very important at the moment and companies are returning to dividends after the pause due to Covid. Potter went on to say the team is taking a "cautious but not bearish" approach to its portfolio and is adding more protection in the form of options. Gary Potter retires from industry after more than four decades This protection amounts to about 10% of the portfolio, which costs about 12bps of performance, he said.   Potter said this cautious approach is what has led to a recent la...