Demand for income will never go away yet the supply today is being narrowed further by not only a lack of higher-yielding stock opportunities but also investors’ fascination with single country equity funds, the UK in particular.
You would expect a global equity income manager such as Standard Life Investments’ Kevin Troup to point out the weaknesses of a narrower opportunity set offered by a single country equity income fund, but what you may not expect to hear is precisely where in the world he is investing to realise the opportunities available to him and his team without having to eat into capital.
And given the breadth of SLI’s reach, it may also surprise you to know that half of his fund is in one single country…for a very good reason.
