Income and Growth Portfolio
This Portfolio aims to deliver a combination of income and capital growth. There is a target net annual yield of 4%* from a selection of 5 equally weighted underlying funds.
The core of the portfolio is a combination of UK and global equity income funds, provided by the Artemis Income and Newton Global Higher Income funds. Both funds concentrate on investing in good quality companies that are capable of paying a reliable and growing dividend income. The Artemis Income's focus on UK equity provides a broad exposure to predominantly large and mid cap UK stocks, while the Newton Global Higher Income, which invests into a global portfolio of company shares, with the aim of generating an attractive income yield, as well as capital growth over time, adds geographic diversification.
Further diversification is achieved with the M&G Optimal Income, which has the flexibility to make tactical switches between government and corporate bonds as the manager believes is appropriate. It will typically invest a small proportion of its overall weight into equities or other financial instruments.
The LV= UK Equity Income maintains the theme of investing in UK equities to generate and income, whilst the small size of the fund makes it flexible enough to pursue stock opportunities that larger funds (in a crowded UK equity income market) cannot. Despite the short track record, the manager (and his team) has ample experience managing similar mandates successfully at other fund management houses.
Finally, the Ignis Argonaut European Income adds a more focused geographical diversification, concentrating on European companies, where there is a much greater choice of high yielding stocks than in the UK.
Chartwell View, "Companies that look after their investors by paying them a dividend tend to be well run businesses. Consequently equity income funds haave a good history of producing returns. We believe it's also important not to confine yourself to UK funds, however, as overseas compnaies are nearly as likely to pay a dividend these days."
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.