The hunt for income: Is LPE a viable alternative?

With gilt yields breaching their all time lows, the clamour for alternative sources of income shows no sign of abating. Corporate Bond funds have been the best sellers over the last year but this demand has driven yields on investment grade bonds towards 4%, a level which makes equity investment look attractive on a long term view, given the prevailing 3.7% dividend yield on the UK market. Equity Income funds have thus enjoyed steady inflows and investment companies that deliver an above average yield trade at a premium to net asset value more often than not. Income-oriented invest...