Golf model portfolio - immediate growth, medium risk

Income: Immediate
Risk: Medium
Last updated: January 3, 2020

Who is it for

Investors looking primarily for a high starting income and to maintain the value of their 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 seeking to maximise their income who are not so concerned about their income increasing over time.
May also appeal to investors approaching retirement who can opt to reinvest their dividends until required.

Portfolio breakdown

Baillie Gifford Strategic Bond

Invests in different types of corporate bonds to generate a high monthly income.

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City of London

Invests mainly in well-known blue chip UK-listed companies and has been increasing its annual income for nearly 50 years.

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BMO Commercial Property

This trust is the largest in the direct property investment trust sector with total assets of £1.4 billion. Led by Richard Kirby, it has one of the most experienced management teams. 

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Artemis High Income

A stalwart UK equity income fund.

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Fidelity Multi-Asset Income

Aims to generate a natural and sustainable income by investing in a broad range of assets

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Jupiter Strategic Bond

Replaced Invesco Monthly Income Plus with this cautiously positioned fund

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Schroder Income Maximiser

This fund was originally brought in to replace Premier Optimum Income. We are reversing that decision.

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Why these funds were selected

Read our latest
Model Portfolio
Quarterly Review

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 continued its strong performance but has now become a real estate investment trust and so is no longer recognised by the Association of Investment Companies. It has therefore been replaced by BMO Commercial Property investment trust, with a yield of 5% plus that compares well with Picton.

Model Portfolio Golf performance 3 January 2020

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Golf 2.0 3.7 12.2 16.4 28.5 88.1
FTSE All Share 3.3 5.4 19.1 22.0 43.8 99.1
FTSE UK Private Investor Income 0.6 3.0 12.0 18.1 38.7 78.2

 

Timeline

2020

  • Buy
    BMO COMMERCIAL PROPERTY
    January 2020

    Has a yield in excess of 5% and replaces the Picton trust.

  • Sell
    PICTON PROPERTY INCOME
    January 2020

    Converted to a real estate investment trust so forced to sell as no longer recognised by the AIC.

2019

  • Buy
    SCHRODER INCOME MAXIMISER
    January 2019

    Has hit its income target every year since  launch in 2005

  • Buy
    JUPITER STRATEGIC BOND
    January 2019

    Replaces Invesco Monthly Income Plus

  • Buy
    FIDELITY MULTI ASSET INCOME
    January 2019

    Broad range of assets to diversify risk

  • Sell
    INVESCO MONTHLY INCOME PLUS
    January 2019

    Erratic performance

  • Sell
    PREMIER OPTIMUM INCOME
    January 2019

    This fund was responsible for most of the portfolio losses

2018

  • Sell
    SCHRODER INCOME MAXIMISER
    January 2018

    The fund has been underwhelming since Thomas See left in July 2016.

  • Buy
    PREMIER OPTIMUM INCOME
    January 2018

    An outperformer on a total return basis over the past three years.

  • Sell
    THREADNEEDLE UK EQUITY INCOME
    January 2018

    Replaced with Artemis High Income, a strategic bond fund.

  • Buy
    ARTEMIS HIGH INCOME
    January 2018

    The fund has a 16 per cent weighting in the portfolio.

2017

  • Sell
    F&C COMMERCIAL PROPERTY
    July 2017

    Premium too high.

  • Buy
    PICTON PROPERTY INCOME
    July 2017

    Much more reasonable premium of 2 per cent compared to its predecessor.

2016

  • Sell
    HENDERSON UK PROPERTY
    October 2016

    We feel it would be highly advantageous to hold our property exposure in a closed-ended fund.

  • Buy
    F&C COMMERCIAL PROPERTY
    October 2016

    Provides attractive source of income and has strong performance record.

  • Sell
    TEMPLE BAR
    January 2016

    Contrarian approach has produced disappointing capital performance.

  • Buy
    CITY OF LONDON
    January 2016

    Conservatively managed UK large cap fund with long record of dividend increases.

2015

  • Sell
    FIDELITY MONEYBUILDER INCOME
    April 2015

    Falling yields making this area less attractive.

  • Buy
    BAILLIE GIFFORD CORPORATE BOND
    April 2015

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

2013

  • Sell
    M&G OPTIMAL INCOME
    October 2013

    Falling yield has made fund less attractive for immediate income seekers

  • Buy
    HENDERSON UK PROPERTY
    October 2013

    More attractive yield and scope for income and capital growth.

  • Sell
    M&G CORPORATE BOND
    January 2013

    With outlook for equities improving, this fund sold to reduce bond exposure.

  • Buy
    THREADNEEDLE UK EQUITY INCOME
    January 2013

    Provides better income growth potential than bonds, and prospect of capital gains.

2012

  • Buy
    FIDELITY MONEYBUILDER INCOME
    January 2012

    Provides exposure to high-quality investment-grade bonds for security of income and capital.

  • Buy
    INVESCO PERPETUAL MONTHLY INCOME PLU
    January 2012

    Invests mainly in bonds, but can hold up to 20 per cent in equities.

  • Buy
    M&G CORPORATE BOND
    January 2012

    Provides exposure to high-quality investment-grade bonds for security of income and capital.

  • Buy
    M&G OPTIMAL INCOME
    January 2012

    Strategic, go-anywhere bond fund.

  • Buy
    SCHRODER INCOME MAXIMISER
    January 2012

    UK equity income fund with enhanced yield from sales of options.

  • Buy
    TEMPLE BAR
    January 2012

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