Allianz to launch European equity income fund

The fund will invest in blue chip companies, aiming for a high but sustainable level of income. Valuations for equities are low by historic standards and are discounting bad news including dividend cuts, according to Neil Dwane, CIO Europe, RCM. "Given the incredibly challenging outlook for world markets, we believe that equities will yield better returns than cash or government debt as bond issuance and money are printed in huge quantities." He expects European blue chips to offer 'extremely attractive and well covered' dividend yields. The Continent currently offers three times as...