Santander: mega cap's still dominant

Salih, who manages the Santander Equity Income fund, argues that with Sterling continuing to look weak against both the Euro and the US dollar, larger caps, particularly mega caps with significant exposure to the US dollar, look most favourable. He said: "These [large caps] continue to look attractive, with strong balance sheets, stable earnings prospects and growing dividends at attractive initial yields." Looking at sectors specifically, Salih currently remains overweight in pharmaceuticals, which he argues offers attractive yields at good valuations, and whose earnings will benefit ...