Lean times among equity income shares can result in dividend cuts by equity income funds, but Fidelity Global Dividend (GB00B7778087) has managed to increase its dividend year on year - even at a time when 60 per cent of its peers cut theirs. Fidelity Global Dividend's manager explains to deputy personal finance editor Kate Beioley how he has managed to do this and what traps equity income investors should avoid, as well as highlighting some of the shares that have helped maintain this fund's rising dividend.
OTHER STORIES IN THIS ISSUE
This week's tip also highlights a fund with an attractive yield, and which is focused on a region that seems to be recovering and where companies' earnings are growing. Although there are uncertainties over this region, the fund's experienced managers target undervalued stocks that offer reliable and sustainable dividends with the potential to grow.
Among equity focused investment trusts yields have been falling but 11 of them still yield over 4 per cent. Kate Beioley finds out which these are and why they have higher yields, and also explains what has been driving down the yields of some of their peers.
Exchange traded funds (ETFs) focused on specific industry sectors are a convenient way for investors to take a tactical view on a certain area. But these funds also incur a number of risks meaning they are not suitable for the faint hearted. Kate Beioley explains why and also suggests what might be a less risky way to get sector exposure.
Henderson High Income (HHI) and Threadneedle UK Select (UKT) are proposing a merger, so personal finance writer Emma Agyemang looks at what the terms and conditions of this would be for each trust's shareholders. She also asks the experts if this is a good deal for shareholders and whether there are any downsides they should bear in mind when deciding what to do.
In our latest podcast Monica Tepes, director of investment companies research at Cantor Fitzgerald, explains how investment trusts focused on alternative assets can generate a high income. Kate Beioley sets out the best asset allocation strategies and funds to use with a Lifetime Individual Savings Account, and Emma Agyemang explains how a new allowance could cut your children's and grandchildren's inheritance tax bills.
Our podcast is now available across five different distribution channels to allow you to access it in the most convenient way. Find us on Soundcloud, Acast, Audioboom, Stitcher and iTunes.
This week's Portfolio Clinic features a reader looking to preserve his assets so he can pass them onto his children. Our experts explain why he should diversify and derisk his holdings, as well as why funds might be better for him than direct equities, and suggest some good options.
Do you have a personal finance problem? Or want to know more about something in this week's personal finance pages? If so let us know by getting in touch with leonora.walters@ft.com, kate.beioley@ft.com or emma.agyemang@ft.com.
