by Phil Doel
15. December 2011 18:58
Equity markets are clearly being driven by macro factors and this looks set to continue for some time to come. So looking for capital growth potential through bottom-up fundamental analysis has been difficult.
In such an environment though, bottom-up research still has a lot of value in identifying strong sources of income potential for my UK Equity Income Fund.
I have been looking at the listed Lloyds syndicates and recently added Amlin to and increased holdings in Beazley in the portfolio. The outlook for insurance rates is positive and both organisations have a conservative approach to investment in the business.
Both companies also have an attractive dividend yield around 7% for Amlin and 6% for Beazley, which I believe should be sustainable.
