Van der Klugt backs equities

Schroders UK Income manager Humphrey van der Klugt sees equity yields at their most attractive level for 20 years against gilts. The manager of the Schroder Income fund said the gap between equity and gilt yields has narrowed to its closest point for a generation. The average dividend yield on the FTSE All-Share is at 3.53% compared to a 4.36% redemption yield on 10-year gilts. This, he said, represents a huge opportunity for equity investors willing to buy. Since taking over the fund from Ian McVeigh in February 2002, Van der Klugt has cut back the number of holdings in the portfolio b...