The falling oil price will be most profoundly felt by the general public in the UK at the petrol pumps as fuel costs fall, and will deliver gains to a suite of UK companies, according to Laith Khalaf, senior analyst at Hargeaves Lansdown.
Latest from What Investment
Standard Life Investments: Rio Tinto's problems mean it's years away from being an attractive income investment
Thomas Moore, manager of the £781 million Standard Life UK Equity Income Unconstrained fund, which has returned 108 per cent over the past five years compared with 78 per cent for the average fund in the IA UK Equity Income sector, has revealed that he has sold all of his shares in mining giant Rio Tinto (LON:RIO).
Gervais Williams, the veteran UK equity income investor who currently manages the Miton Multi-Cap Income fund and the Diverse Income investment trust, amongst other mandates, has outlined for What Investment the reasons that he has no investments in the largest UK oil companies or supermarkets.
Mark Slater, manager of the best and second-best performing funds out of more than 270 funds in the IA UK All Companies sector in 2014, and manager of the tenth-best out of more than 80 funds in the IA UK UK Equity Income sector last year, intends to continue to swerve investments in what he calls the ‘traditional’ UK banks for the time being.
Income investors should not be distracted by the recent positive share price performance of supermarket giant Tesco, and instead consider alternative stocks to generate income, according to Job Curtis, manager of the £1 billion City of London Investment Trust.
While the long-term capacity of the central bank policy known as QE to deliver sustained improvements to the economies in which it is deployed is debatable, the instigation by the European Central Bank (ECB) of its own QE programme should be beneficial for Eurozone equities, according to Laith Khalaf, senior analyst at Hargreaves Lansdown.
Mark Wharrier, co-manager of the BlackRock UK Income fund, which is the sixth best performing out of 87 funds in the IA UK Equity Income sector over the past 12 months, has disclosed the three stocks that he favours for UK income investors in the current climate.
Whilst UK equity investors have experienced a tumultuous start to 2015, the fall in the oil price will lead to improved prospects for developed equity markets in the coming year, according to a host of top performing fund managers.
John Ventre, manager of more than £2 billion of assets at Old Mutual Global Investors, believes that while there is rapid change occurring within emerging markets, China could be the world’s best investment in the coming years.
The media is currently rife with reports of a dramatic increase in the demand for rental properties, making it the perfect time for first-time investors to get involved in property for buy-to-let purposes. It is important however to get the process running smoothly by planning ahead, and investors should consider some of the key points below before committing themselves.
Ruffer Investment Trust: The best way for investors to protect themselves from deflation in the year ahead
While there are ‘considerable’ deflationary pressures in the global economy at present, the continuing policy actions of central banks are likely to minimise the chances of actual deflation taking hold, according to Hamish Baillie, investment director of the £309 million Ruffer Investment Trust (LON:RICA).
The vast majority (93 per cent) of structured products that matured in 2014 returned a profit, with only 1 per cent losing money for investors, according to research from CompareStructuredProducts.com.
High-profile UK smaller companies investor Gervais Williams, whose Diverse Income investment trust has returned 77 per cent compared with 50 per cent for the average fund in the AIC UK Equity Income sector since 2011, has revealed the UK smaller companies he is investing in for income in the current climate.
Bill Nixon, senior partner at Maven Capital and manager of the Maven VCTs, has disclosed to What Investment that he has been seeking opportunities to invest the capital raised by the VCTs in areas outside London and the South East, as he feels that there is much more value to be had in the north of the UK.
Income investors should not be concerned about the ability of oil giant Royal Dutch Shell (LON:RDSA) to continue to pay a dividend amid the carnage of the tumbling oil price, according to Chris White, head of equities at Premier Asset Management.