Kilo model portfolio - balanced income, higher risk

Income: Balanced
Risk: Higher
Last updated: April 18, 2018

Who is it for

Investors looking for a good income from their capital, with the potential for some growth in their income and 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 with other secure sources of income who are prepared to take additional risks with their spare capital in order to boost their income and growth prospects.
May also appeal to younger investors who can opt to reinvest their dividends as part of a long-term growth strategy.

Portfolio breakdown

Artemis Global Income

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

Baillie Gifford Strategic Bond

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

Lowland

Invests in UK companies of all sizes to achieve increasing income and capital growth.

JPMorgan European IT

Adds some regional diversity to the portfolio.

MI Chelverton UK Equity Income

Invests in higher yielding small and medium sized UK companies.

Schroder Income

Strong track record of seeking out unloved stocks.

Why these funds were selected

In order to provide investors with a regular basic monthly income as well as some capital security, this portfolio holds the Baillie Gifford Strategic Bond fund. It also has a core UK equity holding to complement Schroder Income's focus on recovery stocks. This fund's focus is on capital preservation while aiming to achieve a growing income and capital growth.

Two further UK equity holdings in the portfolio are Lowland and PFS Chelverton UK Equity Income which provide more exposure to medium and smaller sized companies and should give the portfolio greater income and capital growth potential. Diversified international exposure comes from the portfolio’s holdings in Artemis Global Income and regional diversity comes from the income shares of JPMorgan European IT.

Model Portfolio Kilo performance 31 July 2018

  Total returns (%) over:
  1 mo 6 mo 1 yr 3 yrs Since inception
Kilo 1.4 1.3 5.7 29.1 116.7
FTSE All-Share index 1.3 5.0 9.2 30.2 88.5
FTSE UK Private Investor
Income index
1.3 2.6 5.4 25.3 65.1

 

Timeline

2018

  • Sell
    NEWTON GLOBAL INCOME
    January 2018

    Lost patience with this underperformer.

  • Buy
    JPMORGAN EUROPEAN IT
    January 2018

    Adding some regional diversity.

  • Sell
    RATHBONE INCOME
    January 2018

    Weakest performer in the portfolio.

  • Buy
    SCHRODER INCOME
    January 2018

    Value approach targets unloved companies.

2017

  • Sell
    TROY INCOME & GROWTH
    July 2017

    Has underperformed its peers and is in the bottom quartile of its sector over 12 months.

  • Buy
    TB WISE INCOME
    July 2017

    A global multi-asset fund which has solidly outperformed over the long term and is the top quartile over one and three years.

2016

  • Sell
    TEMPLE BAR
    January 2016

    Contrarian approach has produced disappointing capital performance.

  • Buy
    LOWLAND
    January 2016

    Invests in UK companies of all sizes, emphasises capital growth as well as increasing income.

2015

  • Sell
    M&G OPTIMAL INCOME
    April 2015

    Falling yield has made fund less attractive for income seekers.

  • Buy
    BAILLIE GIFFORD CORPORATE BOND
    April 2015

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

  • Sell
    UNICORN UK INCOME
    January 2015

    Change of manager.

  • Buy
    PFS CHELVERTON UK EQUITY INCOME
    January 2015

    Run by tried and tested managers, invests in small and mid sized companies.

2014

  • Sell
    JOHAMBRO UK EQUITY INCOME
    April 2014

    Soft closed.

  • Buy
    TROY INCOME & GROWTH
    April 2014

    Defensive UK equity trust, with emphasis on capital preservation and paying an attractive yield.

  • Sell
    CF MITON UK MULTI CAP INCOME
    January 2014
  • 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
    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
    JOHAMBRO UK EQUITY INCOME
    January 2012

    Strongly performing UK equity income fund with experienced managers.

  • Buy
    KAMES HIGH YIELD
    January 2012

    Provides high income from high yielding global bonds.

  • 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
    NEWTON GLOBAL INCOME
    January 2012

    Provides international diversification and benefits from solid past performance record.

  • Buy
    TEMPLE BAR
    January 2012

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

  • Buy
    UNICORN UK INCOME
    January 2012

    Specialises in higher yielding smaller companies.