ISA Choices Focus on Income
Focus on Income
Baillie Gifford High Yield Bond
The fund aims to produce a high level of return by investing in a diversified portfolio consisting primarily of sub-investment grade (high yield) bonds. Robert Baltzer has been a named manager since 2010 and, although Lucy Isles was only added last year, she has been part of the experienced bond team since 2012. The fund has between 50 and 90 holdings and focuses on perceived undervalued securities. This strategy may lead to greater volatility than some high yield funds, so investors should be prepared to hold the fund over longer time periods. To view videos about the fund, on the Baillie Gifford website, click on the link below.
Invesco Monthy Income Plus (UK)
This fund sits in the strategic bond sector, which means that the managers have the flexibility to invest in different types of bond (for example government, corporate, high yield) to shape the portfolio to best reflect current market conditions. Paul Causer and Paul Read have just passed their 20th anniversary managing the fund which has been popular with our clients for many years. The fund can also hold equities if desired and, currently, allocates 13% to them under the control of Ciaran Mallon, who joined the team in 2013. The fund has an excellent track record and is currently yielding just over 5% per annum. You can see Morningstar analysts views on the fund by clicking the link below.
Premier Multi-Asset Monthy Income
This is a multi-asset fund, aiming to generate a high level of income, paid monthly, by investing in different asset classes, such as equities, bonds, commercial property and alternative investments, both in the UK and internationally. The fund typically invests in funds and other investments managed by carefully selected, specialist fund managers. The management team is highly experienced, having all joined Premier between 1987 and 2006. The investment process emphasises diversification, with the managers preferring to buy funds when they are smaller and less well known. The fund currently has around 40% each in bonds and equities.
The fund aims to provide income and some capital growth by investing in equities of UK companies. The fund invests at least 80% of its assets in a concentrated range of equities, typically holding between 30 and 50 companies. Nick Kirrage and Kevin Murphy have managed the fund since 2010 and their ‘value’ approach focuses on companies they believe have been undervalued by the market. The fund was the top performer in the UK Equity Income sector in 2018 and forms the basis of the Schroder Income Maximiser fund, featured in ISA Choices 2018. To see a video with fund manager Nick Kirrage, click on the link below.