Juliet model portfolio - immediate income, higher risk

Income: Immediate
Risk: Higher
Last updated: December 4, 2018

Who is it for

Investors looking primarily to maximise their starting income and to maintain the value of their capital who are prepared to take greater risks with their capital to achieve these aims.
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 seeking to maximise the income returns from their capital.
May also appeal to investors approaching retirement who can opt to reinvest their dividends until required as part of a growth strategy.

Portfolio breakdown

Artemis Global Income

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

Picton Property Income

Commercial property is still an attractive source of income and this trust trades at a much lower premium (2 per cent) than the F&C Commercial Property trust it replaces.

TB Wise Income

Looks for attractive income-paying assets across the widest spectrum.

Marlborough Global Bond

Highly diversified bond fund which aims to produce a high, low risk, income.

Axa Framlington Monthly Income

Mixes high-yiedling stocks with lower-yielders that have growth potential.

Premier Optimum Income

Similar income to the Schroder Income Maximiser fund it replaces but with better total return.

Why these funds were selected

Although consisting mainly of equity funds, this portfolio contains a mixture of three asset classes. Marlborough Global Bond gives it a broad based fixed interest content with an above average yield for its sector. Picton Property Income has a similar yield to its predecessor F&C Commercial Property but trades at a lower premium of 2 per cent.

Axa Framlington Monthly Income is included with its yield of more than 4 per cent from a mix of high-yielding stocks and lower-yielding companies with growth potential Run by industry veteran George Luckraft. Premier Optimum Income can provide a good level of income and an enhanced total return. TB Wise Income can invest in income-paying assets across the widest spectrum, including fixed interest, commercial property, shares and alternatives such as private equity and infrastructure, anywhere in the world. Finally, Artemis Global Income gives the portfolio its international exposure.

Model Portfolio Juliet performance 4 Dec 2018

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Juliet -1.3 -5.6 -2.8 17.6 34.9 87.1
FTSE All Share -1.6 -7.6 -1.4 22.6 29.2 72.1
FTSE UK Private Investor Income 0.3 -0.5 2.0 23.0 37.1 61.8

 

Timeline

2018

  • Sell
    RATHBONE INCOME
    January 2018
  • Buy
    AXA FRAMLINGTON MONTHLY INCOME
    January 2018

    A yield of 4 per cent from mainly blue chip names such as BP and AstraZeneca.

  • Sell
    SCHRODER INCOME MAXIMISER
    January 2018
  • Buy
    PREMIER OPTIMUM INCOME
    January 2018

    Provides good income combined with decent returns.

2017

  • Sell
    F&C COMMERCIAL PROPERTY
    July 2017
  • Buy
    PICTON PROPERTY INCOME
    July 2017

    This trust has a similar yield to the F&C trust it replaces but trades at a much lower premium of 2 per cent.

  • Sell
    INVESCO PERPETUAL INCOME
    January 2017
  • Buy
    TB WISE INCOME
    January 2017

    Can invest in income-paying assets across the widest spectrum.

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.

2015

  • Sell
    AXA GLOBAL HIGH YIELD
    January 2015

    Concerned about narrow focus on high yield bonds.

  • Buy
    MARLBOROUGH GLOBAL BOND
    January 2015

    Well diversified fund with scope to invest in all types of bonds.

2014

  • Sell
    CF MITON UK MULTI CAP INCOME
    January 2014

    Soft closed.

  • Buy
    RATHBONE INCOME
    January 2014

    Dependable multi cap UK equity income fund.

  • Sell
    SCHRODER GLOBAL EQUITY INCOME
    January 2014

    Change of manager.

  • Buy
    ARTEMIS GLOBAL INCOME
    January 2014

    Good international diversification with low exposure to the UK.

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
    KAMES HIGH YIELD
    April 2013

    Disappointing performance.

  • Buy
    CF MITON UK MULTI CAP INCOME
    April 2013

    Attractive yield with bias towards small and medium sized companies.

  • Sell
    MURRAY INTERNATIONAL
    January 2013

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

  • Buy
    SCHRODER GLOBAL EQUITY INCOME
    January 2013

    Invests internationally in solid companies with stable business models.

2012

  • Buy
    AXA GLOBAL HIGH YIELD
    January 2012

    Provides high income from high yielding global bonds.

  • Buy
    KAMES HIGH YIELD
    January 2012

    Provides high income from high yielding global bonds.

  • Buy
    INVESCO PERPETUAL INCOME
    January 2012

    Solid UK equity income performer.

  • Buy
    M&G OPTIMAL INCOME
    January 2012

    Strategic, go-anywhere bond fund.

  • Buy
    MURRAY INTERNATIONAL
    January 2012

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

  • Buy
    SCHRODER INCOME MAXIMISER
    January 2012

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