Kilo model portfolio - balanced income, higher risk

Who is it for: 
  • Investors looking for a good income from their capital, with the potential for some growth in their income and capital.
  • However, investors must be able to afford for their income to fall and to lose some of their capital under a worst case scenario.
  • May be suitable for retired investors with other secure sources of income who are prepared to take additional risks with their spare capital in order to boost their income and growth prospects.
  • May also appeal to younger investors who can opt to reinvest their dividends as part of a long-term growth strategy.
What it looks like: 
Fund Role in portfolio
Artemis Global Income Invests in strong companies globally for income, has low UK content. View Factsheet
Ballie Gifford Corporate Bond Invests in different types of corporate bonds to generate a high monthly income. View Factsheet
Lowland Invests in UK companies of all sizes to achieve increasing income and capital growth. View Factsheet
Newton Global Income Good long term record of investing for income using company’s global thematic approach. View Factsheet
PFS Chelverton UK Equity Income Invests in higher yielding small and medium sized UK companies. View Factsheet
Rathbone Income Reliable UK equity income performer. View Factsheet
Why were these funds selected: 

In order to provide investors with a regular basic monthly income as well as some capital security, this portfolio holds the Baillie Gifford Corporate Bond fund. It also has a core UK equity holding with Rathbone Income . This fund's focus is on capital preservation while aiming to achieve a growing income and capital growth.

Two further UK equity holdings in the portfolio are Lowland and PFS Chelverton UK Equity Income which provide more exposure to medium and smaller sized companies and should give the portfolio greater income and capital growth potential. Diversified international exposure comes from the portfolio’s holdings in Artemis Global Income and Newton Global Income which both have strong track records.

* Charts show bid-to-bid performance with income reinvested.

Please note that past performance is not a guide to future performance. Fund performance data does not take into account fees and expenses which are specific to individual plans.

Please be aware of the risks involved. Money Observer does not provide investment advice. You should choose investments to suit your personal circumstances and attitude to risk. If you are at all unsure you should seek advice.

Where to get it: 

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Timeline: 

2017

  • Sell Troy Income & Growth

    Has underperformed its peers and is in the bottom quartile of its sector over 12 months.

2016

  • Sell Temple Bar

    Contrarian approach has produced disappointing capital performance.

  • Buy Lowland

    Invests in UK companies of all sizes, emphasises capital growth as well as increasing income.

2015

  • Sell M&G Optimal Income

    Falling yield has made fund less attractive for income seekers.

  • Buy Baillie Gifford Corporate Bond

    High yielding, strategic, go-anywhere fund with greater scope to adjust to changing circumstances.

  • Sell Unicorn UK Income

    Change of manager.

  • Buy PFS Chelverton UK Equity Income

    Run by tried and tested managers, invests in small and mid sized companies.

2014

  • Sell JOHambro UK Equity Income

    Soft closed

  • Buy Troy Income & Growth

    Defensive UK equity trust, with emphasis on capital preservation and paying an attractive yield.

  • Sell CF Miton UK Multi Cap Income

  • Buy Rathbone Income

    Dependable multi cap UK equity income fund.

  • Sell Schroder Global Equity Income

    Change of manager

  • Buy Artemis Global Income

    Good international diversification with low exposure to the UK.

2013

  • Sell Kames High Yield

    Disappointing performance.

  • Buy CF Miton UK Multi Cap Income

    Attractive yield with bias towards small and medium sized companies.

  • Sell Murray International

    Premium to net asset value too high making it unattractive to new investors.

  • Buy Schroder Global Equity Income

    Invests internationally in solid companies with stable business models.

2012

  • Buy JOHambro UK Equity Income

    Strongly performing UK equity income fund with experienced managers.

  • Buy Kames High Yield

    Provides high income from high yielding global bonds.

  • Buy M&G Optimal Income

    Strategic, go-anywhere bond fund.

  • Buy Murray International

    Provides global diversification with significant exposure to Asian and emerging market equities.

  • Buy Newton Global Income

    Provides international diversification and benefits from solid past performance record.

  • Buy Temple Bar

    Invests mainly in large blue chip companies and has long record of growing its income.

  • Buy Unicorn UK Income

    Specialises in higher yielding smaller companies.

Last updated: 
1 July 2017