Factsheet: IP Monthly Income Plus Z Acc
Rated Fund 2013-2018. A strong team combining bonds and equities
As its name suggests, this fund pays a monthly income, so it is an attractive option for income-seekers. Its current yield is 4.3 per cent. The bond portfolio consists of higher-yielding corporate and government bonds and is managed by one of the UK's most highly rated fixed income teams, Paul Causer and Paul Read.
Unlike most of its peer group in the strategic bond sector, it also includes an element of equities, which gives it extra flexibility. It had 15 per cent of a maximum 20 per cent in shares at the end of 2017, but the defensive positioning of these has arguably held it back compared with other high income funds. The equity portfolio is managed by Ciaran Mallon.
Causer and Read's investment process involves three key elements. They take into account global trends, such as the general direction of monetary policy. They look at the risks involved in investing in individual bonds, and then they consider whether the potential returns sufficiently justify the risks. Mallon looks for well-managed companies that seek to deliver sustainable dividend growth.
The fund has been a long-term stalwart across Whitechurch Securities' income-focused investment portfolios. The wealth manager has invested in the fund for almost 15 years. Ben Willis, its head of research, says: �This fund delivers a superior yield, largely through a long-term favoured proclivity to
financial debt. This has seen the fund deliver exceptional returns in the QE environment and beyond.'
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|United Kingdom (Government Of) 1.25%||2.84 %|
|Long Gilt Future Mar 27 18||2.20 %|
|US 10 Year Note (CBT) Mar18||2.08 %|
|Lloyds Bk||1.96 %|
|Barclays Bk||1.60 %|
|United Mexican States 7.5%||1.49 %|
|Hbos Cap Fdg||1.48 %|
|Nationwide Building Society||1.25 %|
|Rwe Ag||1.23 %|
|Virgin Media Sec F 4.875%||1.19 %|
|United Kingdom||92.61 %|
|Consumer Cyclical||21.50 %|
|Financial Services||20.45 %|
|Consumer Defensive||15.43 %|
Ciaran has worked in equity markets since 1994. After completing his Chemistry degree at Oxford University he joined HSBC Private Clients where he worked as an Investment Analyst. He joined United Friendly Asset Management (UFAM) in 1999 where he worked as a Fund Manager. UFAM was acquired by Royal London Asset Management (RLAM) in 2000. Ciaran left RLAM in 2004 and joined Invesco Perpetual in January 2005.
Paul began his career with UBS (Securities) Ltd, then moved to Merrill Lynch International in 1986. Paul initially worked on the bond sales desk, covering institutional investment managers, before moving onto debt trading and working as a director of fixed income trading in Tokyo from 1991 and in Paris from 1993. Paul joined Perpetual's Fixed Interest team in 1995 and is Joint Head of Fixed Interest Investment with Paul Causer.
Paul is based in our Henley office. He began his investment experience in 1983, prior to which he achieved a BSc in Economics at the London School of Economics. He joined the group in 1994 and Co-Heads the Fixed Income Team.
Data provided by Morningstar.
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