India model portfolio - growing income, medium risk

Income: Growing
Risk: Medium
Last updated: April 13, 2018

Who is it for

Investors looking for a growing income from their capital over the long term, and the prospect of capital growth.
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 looking for long term income and capital growth during their retirement.
May also appeal to investors approaching retirement who can opt to reinvest their dividends until required.

Portfolio breakdown

Artemis Global Income

Invests in strong companies globally for income, has low UK content.

Man GLG UK Income

Solid UK equity income performer.

Bankers

Although classified as a global growth trust, it has a long record of annual dividend increases.

Henderson International Income Trust

Excludes theUK and aims to grow its dividends over the long term.

Seneca Global Income & Growth Trust

Fund of funds invested across a broad range of asset classes.

Foreign & Colonial

A broadly diversified global trust with a long history of dividend growth.

Threadneedle UK Equity Income

A stalwart UK equity income fund.

Why these funds were selected

The vast majority of this portfolio is invested in equities in order to achieve an increasing income and capital growth. However, added income is provided by the cautiously managed Seneca Global Income & Growth Trust. Its fund of funds approach is another source of diversification. Other core holdings in the portfolio are the middle-of-the-road UK equity income funds, Man GLG UK Income and Threadneedle UK Equity Income, both steady past performers. The remainder of the portfolio is invested in global funds. There are two global equity income funds - Artemis Global Income and Henderson International Income - with solid track records, and two global growth investment trusts – Bankers and Foreign & Colonial. Bankers pays a quarterly income. Although its yield is modest at below 3 per cent, it has a long record of growing its annual dividend. Foreign & Colonial also aims to grow its dividend year on year, and offers broad diversification.

Model Portfolio India performance 30 Sept 2018

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
India -0.5 9.8 9.1 47.3 67.5 128.8
FTSE All Share 0.7 8.3 5.9 38.5 43.5 84.6
FTSE UK Private Investor Income -0.1 5.3 5.3 29.8 43.1 65.4

 

Timeline

2018

  • Sell
    INVESCO PERPETUAL INCOME
    January 2018
  • Buy
    MAN GLG UK INCOME
    January 2018

    Adds more potential exposure to income shares.

  • Sell
    PREMIER MULTI ASSET MONTHLY INCOME
    January 2018
  • Buy
    SENECA GLOBAL INCOME & GROWTH TRUST
    January 2018

    Will help the portfolio to grow its income over time.

  • Sell
    NEWTON GLOBAL INCOME
    January 2018
  • Buy
    HENDERSON INTERNATIONAL INCOME
    January 2018

    Aims to grow its dividends over the long term, tallying with the aims of the portfolio.

2016

  • Sell
    SCOTTISH MORTGAGE
    July 2016

    A relatively high risk global choice with a low yield.

  • Buy
    FOREIGN & COLONIAL
    July 2016

    Greater diversification helps reduce risk, while the trust also has a higher yield and history of dividend growth.

  • Sell
    FIDELITY STRATEGIC BOND
    January 2016
  • Buy
    PREMIER MULTI ASSET MONTHLY INCOME
    January 2016

    More scope for growing income across a range of asset classes.

2015

  • Sell
    M&G OPTIMAL INCOME
    April 2015

    Falling yield has made fund less attractive for income seekers.

  • Buy
    FIDELITY STRATEGIC BOND
    April 2015

    Provides greater flexibility to invest in different types of bonds.

  • Sell
    LIONTRUST INCOME
    January 2015

    Change of objective from UK to global income and disappointing returns.

  • Buy
    ARTEMIS GLOBAL INCOME
    January 2015

    Good international diversification with low exposure to the UK.

2013

  • Sell
    TROJAN INCOME
    April 2013

    Soft closed to new investors.

  • Buy
    LIONTRUST INCOME
    April 2013

    Appears well suited to benefit from rising equity markets.

2012

  • Buy
    BANKERS
    January 2012

    Classified as global growth trust but has long history of dividend increases. Aims for dividend growth above inflation.

  • Buy
    INVESCO PERPETUAL INCOME
    January 2012

    Solid UK equity income performer.

  • Buy
    M&G OPTIMAL INCOME
    January 2012

    Strategic, go-anywhere bond fund.

  • Buy
    NEWTON GLOBAL INCOME
    January 2012

    Provides international diversification and benefits from solid past performance record.

  • Buy
    SCOTTISH MORTGAGE
    January 2012

    A high conviction global trust to provide growth and diversity.

  • Buy
    THREADNEEDLE UK EQUITY INCOME
    January 2012

    Solid UK equity income performer.

  • Buy
    TROJAN INCOME
    January 2012

    Aims to provide steady growth and income by investing in reliable companies.