IT Special: What's driving demand of UK Growth & Income sector?

clock

The average UK growth & income trust has outperformed its open-ended counterpart by 6% per annum over the last ten years. Kieran Drake, research analyst at Winterflood Securities, explains why.

For more than three years now, the Bank of England's base rate has been 0.5% history. Such low interest rates have led many investors to look elsewhere for income and one of main the beneficiaries has been the UK equity income sector, which provides investors a reasonable level of income combined with the potential for capital growth. The FTSE All Share, for example, has a current dividend yield of around 3.5%. Revenue reserves Once investors have identified the sector as one which will meet their income requirements, they have a choice between open-ended and closed-ended funds. It i...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Equities

Will a tech shake-up stop the rise of passives?

Will a tech shake-up stop the rise of passives?

'That kind of built-in safety net is hard to beat'

Laura Suter
clock 18 February 2025 • 2 min read
Making sense of the great UK equity sell-off

Making sense of the great UK equity sell-off

Ongoing M&A activity proves alluring for some buyers

Darius McDermott
clock 31 January 2025 • 5 min read
Why investing in Asia is the real deal

Why investing in Asia is the real deal

Accumulating as much insight as possible

Gabriel Sacks
clock 31 January 2025 • 5 min read