UK income

Equities saw a relatively indiscriminate sell-off in Q4 of 2018, with increased volatility and widening valuation spreads.

Equity markets have seen a setback over the past couple of weeks, led by the US, and this has also hit the UK equity market.

One of the reasons income investing has done so well in the long run is that it is a form of value investing.

With 55% of FTSE 100 dividends forecast to come from just ten companies in 2018, it is not surprising many UK equity income strategies are disproportionately invested in a relatively small number of large-cap stocks.

Despite two years passing since the Brexit referendum, we are still some way from knowing how the UK's relationship with the European Union (EU) will evolve in the next few months and years.

In recent months, investors have reacted to a perceived bout of increased uncertainty in global markets as the short-term mood has shifted from one of championing synchronised global growth and reflation to one more of nervousness around emerging markets...

It has been a turbulent few years for UK income investors.

New entrants examined

The UK macro landscape is anything but settled. As Brexit D-Day fast approaches and signs of any tangible progress yet to materialise, markets are gearing up for a prolonged period of uncertainty and confusion.

'Aggressive optimism'