Income and Growth Portfolio
This Portfolio aims to deliver a combination of income and capital growth. There is a target net annual yield of 3-4%* from a selection of 5 equally weighted underlying funds.
This portfolio aims to deliver a combination of income and capital growth. The portfolio targets a rising real level of income over the long term from a selection of five 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. The Newton Global Higher Income adds geographic diversification by investing into a global portfolio of company shares with the aim of generating an attractive income yield, as well as capital growth over time.
Further stock and manager diversification is provided with the Threadneedle UK Equity Income and Lazard Global Equity Income funds. Again, while the Threadneedle fund focuses on the UK, the Lazard fund concentrates on overseas investing. Importantly, both funds have a different investment style from the Artemis and Newton funds, meaning that there is less likelihood of the fund managers selecting the same or similar stocks at any one given time.
Finally, there is the M&G Optimal Income fund. This has the flexibility to make tactical switches between government and corporate bonds as the manager believes appropriate, and provides some fixed income (bond) exposure where volatility of capital is generally lower. It will, however, often invest a small proportion of its overall weight into equities or other financial instruments.
Chartwell View, "Companies that look after their investors by paying them a dividend tend to be well run businesses. Consequently equity income funds have 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."
*this level of return is not guaranteed,and could increase or decrease. It is calculated on a daily basis.