Who is it for
Portfolio breakdown
Baillie Gifford Strategic Bond
Invests in different types of corporate bonds to generate a high monthly income.
City of London
Invests mainly in well-known blue chip UK-listed companies and has been increasing its annual income for nearly 50 years.
Picton Property Income
Trading on a more reasonable premium of around 2 per cent compared to its predecessor F&C Commercial Property.
Note: We no longer have factsheet information for Picton. This is because the trust is now a REIT and on conversion ceased to be part of the AIC, which produces the factsheet information in conjunction with Morningstar.
Artemis High Income
A stalwart UK equity income fund.
Fidelity Multi-Asset Income
Aims to generate a natural and sustainable income by investing in a broad range of assets
Jupiter Strategic Bond
Replaced Invesco Monthly Income Plus with this cautiously positioned fund
Schroder Income Maximiser
This fund was originally brought in to replace Premier Optimum Income. We are reversing that decision.
Why these funds were selected
In order to provide investors with a regular basic monthly income as well as some capital security, this portfolio has two fixed income holdings – Baillie Gifford Corporate Bond and Invesco Perpetual Monthly Income Plus, the latter also has some equity content for growth. There are then two income stalwarts – City of London, an investment trust with a history of increasing its annual dividends for nearly 50 years, and Artemis High Income, a strategic bond fund.
Premier Optimum Income has not only achieved a 7 per cent yield but also significantly outperformed on a total return basis. Picton Property Income continues its strong performance.
Model Portfolio Golf performance 1 February 2019
Total return (%) over: | ||||||
---|---|---|---|---|---|---|
1 mth | 6 mths | 1 year | 3 yrs | 5 yrs | Inception | |
% | % | % | % | % | % | |
Golf | 3.0 | -3.4 | 2.7 | 20.8 | 23.9 | 68.4 |
FTSE All Share | 4.2 | -8.4 | -3.8 | 28.5 | 31.2 | 72.6 |
FTSE UK Private Investor Income | 2.2 | -2.1 | 0.4 | 24.2 | 37.8 | 61.9 |
Timeline
2019
-
Buy
SCHRODER INCOME MAXIMISER
January 2019Has hit its income target every year since launch in 2005
-
Buy
JUPITER STRATEGIC BOND
January 2019Replaces Invesco Monthly Income Plus
-
Buy
FIDELITY MULTI ASSET INCOME
January 2019Broad range of assets to diversify risk
-
Sell
INVESCO MONTHLY INCOME PLUS
January 2019Erratic performance
-
Sell
PREMIER OPTIMUM INCOME
January 2019This fund was responsible for most of the portfolio losses
2018
-
Sell
SCHRODER INCOME MAXIMISER
January 2018The fund has been underwhelming since Thomas See left in July 2016.
-
Buy
PREMIER OPTIMUM INCOME
January 2018An outperformer on a total return basis over the past three years.
-
Sell
THREADNEEDLE UK EQUITY INCOME
January 2018Replaced with Artemis High Income, a strategic bond fund.
-
Buy
ARTEMIS HIGH INCOME
January 2018The fund has a 16 per cent weighting in the portfolio.
2017
-
Sell
F&C COMMERCIAL PROPERTY
July 2017Premium too high.
-
Buy
PICTON PROPERTY INCOME
July 2017Much more reasonable premium of 2 per cent compared to its predecessor.
2016
-
Sell
HENDERSON UK PROPERTY
October 2016We feel it would be highly advantageous to hold our property exposure in a closed-ended fund.
-
Buy
F&C COMMERCIAL PROPERTY
October 2016Provides attractive source of income and has strong performance record.
-
Sell
TEMPLE BAR
January 2016Contrarian approach has produced disappointing capital performance.
-
Buy
CITY OF LONDON
January 2016Conservatively managed UK large cap fund with long record of dividend increases.
2015
-
Sell
FIDELITY MONEYBUILDER INCOME
April 2015Falling yields making this area less attractive.
-
Buy
BAILLIE GIFFORD CORPORATE BOND
April 2015High yielding, strategic, go-anywhere fund with greater scope to adjust to changing circumstances.
2013
-
Sell
M&G OPTIMAL INCOME
October 2013Falling yield has made fund less attractive for immediate income seekers
-
Buy
HENDERSON UK PROPERTY
October 2013More attractive yield and scope for income and capital growth.
-
Sell
M&G CORPORATE BOND
January 2013With outlook for equities improving, this fund sold to reduce bond exposure.
-
Buy
THREADNEEDLE UK EQUITY INCOME
January 2013Provides better income growth potential than bonds, and prospect of capital gains.
2012
-
Buy
FIDELITY MONEYBUILDER INCOME
January 2012Provides exposure to high-quality investment-grade bonds for security of income and capital.
-
Buy
INVESCO PERPETUAL MONTHLY INCOME PLU
January 2012Invests mainly in bonds, but can hold up to 20 per cent in equities.
-
Buy
M&G CORPORATE BOND
January 2012Provides exposure to high-quality investment-grade bonds for security of income and capital.
-
Buy
M&G OPTIMAL INCOME
January 2012Strategic, go-anywhere bond fund.
-
Buy
SCHRODER INCOME MAXIMISER
January 2012UK equity income fund with enhanced yield from sales of options.
-
Buy
TEMPLE BAR
January 2012Invests mainly in large blue chip companies and has long record of growing its income.