UK Best Equity Income
Published / Last Updated on 09/05/2008
UK Best Equity Income
According to the manager of Henderson’s, UK Equity Income fund, the UK is the top location for companies with good dividend growth prospects. James Henderson said: “although he could invest in overseas markets such as continental Europe, the UK was more attractive. There are some wonderful companies in Europe, but passing dividends onto shareholders is far down the line of priorities”. He also believes that UK-focused funds would benefit from the interest rate cuts.
Henderson has made use of his recently ordained powers to hold contracts for difference – which account for 5 per cent of the portfolio, he is also edging up his exposure to house builders, now at 3 per cent from zero at the end of last year, as well as increasing his smaller companies weighting and building on his banking exposure by topping up holdings in Lloyds TSB, Royal Bank of Scotland and Barclays and taking a new holding in Alliance and Leicester.
Our view
We agree with Henderson, we have already suggested in our other Asia lead news story today that UK and US larger company markets are the place to be in 2008.
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