4 Undervalued Equities for Income

Silver Rated UK equity income fund manager Clive Beagles says the bond-proxy stocks are overvalued and investors should look for unloved companies who reward with yield

Emma Wall 18 May, 2015 | 10:32AM
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This week Morningstar.co.uk is bringing you simple solutions from the experts about where you should put your money and why.

Bond-like equities are “deeply dangerous” according to revered UK equity income investor Clive Beagles. The JO Hambro Capital Management fund manager warned at the Morningstar Investment Conference in London that for too long investors had sought out bond-proxy stocks, pushing up their value and creating a bubble within the market.

“In 2014 the best performing UK stocks were those which offered a steady stream of income but no share price growth. Defensive stocks such as healthcare companies, real estate businesses and tobacco giants,” he said. “The worst performing stocks last year were cyclicals – such as commodity companies and industrials.”

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BHP Group PLC2,041.50 GBP0.00Rating
JOHCM UK Equity Income A GBP Acc4.19 GBP0.39Rating
Lloyds Banking Group PLC46.48 GBP0.00Rating
Next PLC7,992.00 GBP0.00
Whitbread PLC2,883.00 GBP0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar