TB Saracen UK Income: Dividends in a Changed World
Scott McKenzie & David Clark
About this talk
The UK Equity Income sector has been the foundation of many UK investor portfolios for many years and has hosted a number of our most celebrated fund managers.
However, the current COVID19 crisis is having a profound effect on the ability of companies to pay dividends during 2020. The traditional approach to generating income from a UK equity portfolio has been under threat for some time now with a number of the large income-generating sectors becoming ex-growth. Many UK income investors have become reliant on a small number of high yielding businesses whose best days are behind them and where dividend payments look fragile.
In the current climate this fragility has now become more widespread, with unprecedented numbers of UK companies, both weak and strong, unable to pay scheduled dividends during this crisis.
In this webcast we examine the impact of these recent events and look at the ability of the TB Saracen UK Income fund to rebuild lost capital and income during these troubled times
Some of the key themes we will address include:
- Our current modelling with regard to expected cuts in UK dividend income
- Why value strategies are still relevant in a changing world
- The importance of a focussed, ‘multicap’ approach