Europe and Asia are key factors in L&G Distribution fund

Lead fund manager David North says returns from all asset classes may remain in the single digits this year, but the two regions mentioned should outperform because the price of equities in those regions are more reasonable. Some £100m out of the fund’s £646m equities exposure is now outside the UK. Part of the reason for this is to avoid doubling up exposure to, for example, UK banks, which provide both dividend income through share holdings and fixed income through bond holdings. Yields from UK banks and oil stocks are key to meeting the £1.5bn fund’s focus on generating income, Nor...