Sectors that have long been stalwarts of the equity income sector should continue to be at the core of portfolios, according to Adrian Frost, who jointly runs the Artemis Income Fund.
Frost was speaking on the first of a series of Artemis Despatches videos recorded for FTAdviser.
He says: “The yield landscape is much more even now than it has been in the past in the UK market. I mean one can talk about banks, for example, well those yield less than the market right now. The oil companies yield just a little more than the market, the exception is the mining stocks.”
Frost said such stocks had benefitted from the market’s recent embrace of more cyclical equities.
But he believed there was a longer-term story at play with each of the stocks as well.
Frost says: “When you think of something like ESG. These companies are part of the solution. It is important we get these companies to a better place on these issues, they need careful owners. Miners will be part of the energy transition, as will oil companies.”
He said that far from being threatened by the rise of technology, banks had so far been able to embrace technology to improve their businesses, and it can help to grow profits in future.