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FTSE 100: The 'correct' trend

FTSE 100: The 'correct' trend

Technical analyst Alistair Strang presents a "stonker of a long position with a super tight stop". Here are his key numbers for this week.

Stockwatch: A proven winner still worth owning

Stockwatch: A proven winner still worth owning

Its shares have had an incredible run and there are potential headwinds, but Edmond Jackson believes this retailer still ticks all the boxes.

The week ahead: Things kick into life after Easter break

The week ahead: Things kick into life after Easter break

It's a busy coming seven days, as the likes of Unilever, Reckitt Benckiser and Sky update the market in what is a shortened trading week.

Stockwatch: This momentum play could hit new share price highs

Stockwatch: This momentum play could hit new share price highs

This isn't a long-term investment, says Edmond Jackson, but continued European stimulus could help it achieve record performance.

Up 652% since IPO, Blue Prism sets out plans for "global domination"

Up 652% since IPO, Blue Prism sets out plans for "global domination"

The robotic software provider upped expectations for revenues once again and continues at record high share price levels. David Brenchley speaks to its CEO to get the lowdown.

Why Shell was kicked out of this top-performing portfolio

Potential "money making machine" kicks Shell out of this top-performing portfoli

This portfolio has returned 275% since 2010; David Brenchley finds out which potential "money-making machine" has more upside than Shell.

Why Howdens is on this 'buy list'

Why Howdens is on this 'buy list'

He's seriously tempted to buy this excellent business, but is companies analyst Richard Beddard about to cave in?

The Oil Man: Victoria Oil & Gas, Range Resources, Ascent Resources

The Oil Man:Oil price, Victoria Oil & Gas, Range Resources, Ascent Resources

Oil industry analyst Malcolm Graham-Wood has seen it all. He gives Interactive Investor his opinion on the sector's top stories.

Investors flock to funds with 30% income tax break

Investors flock to funds with 30% income tax break

Shrinking pension allowances have seen more money ploughed into venture capital trusts, reports Josh Lee.

This share could be worth 10% more

This share could be worth 10% more

If this company achieves chartist Alistair Strang's immediate target, it could move into "higher high" territory and jump by a 25%.

What happens to share prices when companies leave AIM?

What happens to share prices when companies leave AIM?
With Sirius Minerals leaving AIM soon, former AIM writer of the year Andrew Hore examines whether moving to the Main Market is such a good move.
Both LSE:GVC:GVC and LSE:PAYS:Paysafe left the Alternative Investment Market (AIM) because large acquisitions meant they had to promise the backers of the deals that they would subsequently move to the Main Market. 
GVC and Paysafe are still two of the most attractive companies on this list with the potential for growth and strong cash generation.
Another company that continues to do well is window and door components manufacturer LSE:TYMN:Tyman. This is an international business that is not dependent on the UK and it still has benefits to come from the integration of acquisitions and cost saving measures. 
Moving 
There appears little correlation between moving to the Main Market and getting a better share price. When it comes down to it, the performance of the company is the only thing that has a real effect.
Retailer LSE:BON:Bonmarche would have slumped on the back of profit warnings whichever market it was on. 
It may even have been the higher profile some of these companies had when they were relatively large on AIM that helped them to gain investor interest, whereas they got lost amongst the larger Main Market companies. 
The most persuasive reason for AIM companies to move to the Main Market is to undertake a larger fundraising than they can succeed with on the junior market. The access to a wider range of investors is useful if it is required. 
Last month LSE:SXX:Sirius Minerals announced its plans to move from AIM to the Main Market. More than 180 companies have already made the move and 19 have done so in the past four years. 
Although the original idea for AIM was to provide a way of enabling companies to grow and build up track records so that they could move to the Main Market, there has been a greater number of companies that have moved the other way.
In fact, some of those companies are ones that have returned to AIM following a previous move to the Main Market. 

With Sirius Minerals leaving AIM soon, former AIM writer of the year Andrew Hore examines whether moving to the Main Market is such a good move.

Fines hit Tesco pre-tax profits as shares tumble

Fines hit Tesco pre-tax profits as shares tumble

Analysts were split on the prospects for Tesco as the supermarket chain reported a return to sales growth in the UK, reports David Brenchley.

10 stocks that could offer protection from market volatility

10 stocks that could offer protection from market volatility

The low-volatility stocks in this basket picked out by Stockopedia's Ben Hobson have produced gains of up to 65% over the past year.

The Oil Man: Oil price, Providence Resources, Hunting, Thalassa

The Oil Man Oil price, Providence Resources, Hunting, Thalassa, Enteq Upstream

Oil industry analyst Malcolm Graham-Wood has seen it all. He gives Interactive Investor his opinion on the sector's top stories.

The best performing asset classes over the past 20 years revealed

The best performing asset classes over the past 20 years revealed

These were the best-performing asset classes over the last two decades. Josh Lee takes a look at insights that could prove useful for investors.

Here's what needs to happen for Sirius to double

Here's what needs to happen for Sirius to double

Closure above this level combined with positive news and market conditions could create the perfect storm for Sirius, says chartist Alistair Strang.

Why changes to the equity income fund sector rules could hit investors hard

Why changes to the equity income fund sector rules could hit investors hard
Reducing the yield target for the IA's key UK equity income sector may mean overall yields will fall, says Franklin Templeton's Colin Morton.
In March, the Investment Association (IA) announced that from last week, it would be lowering its UK equity income sector yield hurdle from 110 to 100 % over a three-year rolling period.
As a UK equity income manager, I have to say I'm somewhat surprised by the decision. In the context of a sector named 'income', it seems counterintuitive that there is no longer a requirement for funds to yield more than the market, especially given that under the new rules, a FTSE 100 tracker fund - which has not been designed for income - could technically now be classified as part of the sector.   
We don't yet know what the long-term impacts of the change will be, and whether these will prove to be helpful; however, there are certain repercussions that I foresee.   
More choice but more confusion
Over the last few years, a lot of funds have been forced to exit the sector as they have struggled to meet the 110 % yield target. However, now that the yield target has been lowered, we will likely see these funds re-applying for entry, alongside a whole list of new players coming into the market. While this will give income investors more choice, it will arguably lead to a more diluted offering.
We believe this has the potential to be confusing for investors, who may find that their income expectations are no longer being met. With the previous target, it was clear that all funds in the sector needed to yield at least 10 % more than the market over three years - helpful for people seeking income especially those in retirement.
There will now be a much wider range of yields, with some funds yielding as low as 90 %. In my view, the income sector will no longer do what it says on the tin.
An overall fall in yield
I fully appreciate that reaching the 110 % yield target has sometimes proved to be very difficult, especially in the current environment, with only a handful of companies such as Shell, BP, HSBC and Vodafone producing the majority of the yield.
However, there are ways for investors to make up the yield if they don't want to be overweight in these companies. For example, managers could look to invest in these stocks, but keep their positions underweight and then top up the dividend with high-yielding stocks such as those in the utilities and pharmaceuticals sectors. 
Of course, the new rules will give managers more flexibility to run their funds in a different way and invest in a broader range of stocks and sectors. Whether this move will prove to be good or bad for long-term performance remains to be seen.
What we do know is that historically the equity income sector, as defined by the 110 % rule, has performed well. That is likely because there has been pressure to maintain a higher yield, so managers have stayed disciplined to buying into stocks that are less 'in vogue' and yielding more than the market, and then selling them when the yield drops.
Going forward, fund managers won't have to do that. They will be able to run stocks for longer, with less concern for yield fluctuations, and will not need to buy the higher-yielding stocks to stay in the sector.
As this pressure is taken away, managers could find that they are not yielding as much anymore, and worryingly, the likelihood is that the yield of the sector overall will fall.
We will also no longer be comparing like with like, as funds will have a variety of objectives and can allocate a higher proportion of their portfolios away from yield-producing stocks.
Growing the dividend
The long-term impacts on income sector performance (be they positive or negative) will not be realised for some time, but with regards to how we run our own fund, the IA reclassification will have little impact.
Our strategy will remain the same and we will continue to focus on growing the dividend yield year-on-year, with the 110 % target still very much front of mind, an important element that we are very proud of when we look at the track record since the inception of our fund.
As the saying goes: 'If it's not broke, why fix it?'
Colin Morton is portfolio manager of the Franklin UK Equity Income fund.

Reducing the yield target for the IA's key UK equity income sector may mean overall yields will fall, says Franklin Templeton's Colin Morton.

JD Sports smashes records once again; 11% rise sees chart breakout

JD Sports smashes records once again; 11% rise sees chart breakout

Full-year results from the unstoppable fashion chain beat analysts' expectations for next year's results, reports David Brenchley.

11 investment trusts with dividend yields of over 4%

11 investment trusts with a dividend yield of over 4%

Investors who are prepared to take some risk in return for potential income may want to consider these trusts. Marina Gerner investigates.

The Oil Man: Oil price, Rockhopper, Savannah Petroleum

The Oil Man: Oil price, Rockhopper, Savannah Petroleum

Oil industry analyst Malcolm Graham-Wood has seen it all. Here, he gives Interactive Investor his opinion on the sector's top stories.