He also believes that the pension reforms announced in this year’s Budget will generate further interest in income investment trusts.
“In the Budget the compulsory purchase of annuities was abolished. So people now have the flexibility to use their pension in a different way rather than put all their money into an insurance company and get an annuity.
“I think income investment trusts can be a very important and significant part of that, not least because of investment trusts’ ability to smooth and grow dividends over time. The last thing you want in retirement is fluctuating income.”
If that investment theme plays out then the hunt for income looks likely to continue unabated for years to come.
Ellie Duncan is deputy features editor at Investment Adviser
