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How Threadneedle’s Thornber is playing bank deleveraging
by Danielle Levy on Feb 26, 2013 at 14:25
Thornber also upped exposure to US dividend-paying stocks on share price weakness around the time of the fiscal cliff negotiations. Although the final settlement of the fiscal cliff and tax question are yet to be finalised, he anticipates there could be a further strengthening of the dividend culture in the US, spurred by a decreasing differential between income and capital gains tax rates.
‘What has been happening with US companies and investors historically is that they have wanted capital returns because they were taxed at a lower rate on it. Going forward, if they are taxed at the same rates, and now people are living off their savings, there could be pressure on companies to do more with dividends rather than buybacks,’ he said.
He is less upbeat on the eurozone, with almost no exposure to peripheral economies, preferring instead Germany, France, Scandinavia and the UK.
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