As we usher in the new year, James Brumwell, the manager of our Regular Income portfolio, has made a number of changes over what has been a truly torrid period.
Purposeful Portfolios: Regular Income
A rising interest rate environment is a difficult one for income investments. The reason for that is quite simple: as rates rise, the dividend or coupon these investments pay tends to look less attractive, so some investors ditch their holdings and the capital value falls.
Our regular income portfolio of investment trusts has posted total returns of 9 per cent since inception last April, despite a ‘hairy start to the year’ which has seen nine holdings in negative territory since our last update. James Brumwell, who is managing the portfolio, has been tinkering to take advantage of capital gains allowances before the end of the tax year.
Our Regular Income portfolio has collected £4,393 in dividends since its April launch, a yield of almost 4.4 per cent. With many UK equity income funds struggling to meet the Investment Association sector requirement to match the yield of the FTSE All-Share index – currently 3.6 per cent – James Brumwell is pleased with his portfolio’s progress
Holly Black speaks to investment trust specialist James Brumwell about his closed-ended line-up for the second in our series of £100,000 portfolios