High Income Portfolio
This Portfolio aims to deliver a 5%* net annual yield from a selection of 5 equally weighted underlying funds. Over the longer term the Portfolio also aims for modest capital growth.
The core of the Portfolio is a combination of sterling denominated government and corporate bonds, provided by the Fidelity Extra Income and Old Mutual Corporate Bond funds. While the Fidelity Extra Income is a well diversified fund capable of holding government, supranational, corporate, high yield and emerging market debt, the Old Mutual Corporate Bond concentrates solely ont he fixed interest securities issued by companies. Further diversification is achieved with the Newton Global Equity Income Fund, which invests into a globally diversified portfolio of company shares, with the aim of generating an attractive income yeild, as well as capital growth over time. The paying of a consistent rising dividend is something that is no long unusual outside of the UK, and we believe it's important to gain exposure to global equities within a diversified portfolio
The Threadneedle High Yield Bond Fund predominantly invests into high yielding fixed interest securities. As a result, the underlying holdings are typically of lower credit quality than traditional corporate bond funds, for example, and therefore higher risk. However, the fund manager aims to identify holdings where the stock issue is either undervalued by the market or has the potential for improving credit quality.
Finally, the Schroder Income Maximiser invests ito the shares of companies that pay a high yielding dividend enjoying not only the income generated from these stocks, but also the potential for capital growth on the equity. The income is further enhanced through the sale of options, making the fund the highest yielding in this portfolio.
The Portfolio pays income monthly, although the payments will not be of equal value.
Chartwell view, “ With the interest rate available on cash so low at present, it's increasingly difficult to generate an acceptable level of income. Blending different high yielding asset classes together is a way to reduce risk, whilst meeting your need for income.”
ISA application form 09/10 & 10/11
Investment Fund application form
*this level of return is not guaranteed,and could increase or decrease. It is calculated on a daily basis.