A steady income in unsteady times

Our income fund blends together a wide variety of investments to produce a high and regular income to investors while seeking to preserve capital.

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  1. Rob Morgan

Many investors are looking for regular and reliable source of income. Relying on one or a small number of shares or bonds to provide income is risky, which is why Charles Stanley Monthly High Income Fund could offer a more prudent solution. It’s conservatively managed and invested across dozens of different companies and institutions.

Earn a yield from a wide variety of sources

The fund invests in a wide variety of investments to generate an attractive income, currently 4.4% a year, variable not guaranteed. It’s a diverse portfolio, monitored and managed by Charles
Stanley’s highly-regarded investment team. 

Lots of little slices of UK and global companies 

No one company represents a large percentage of the portfolio. The largest positions represent around 2%. This means the value of the fund, and income from it, is not overly reliant on one area or single company – important in this uncertain and fast changing world. The fund blends together income ideas from both bond and equity markets, as well as using alternative sources of yield, with the aims of diversification and capital preservation firmly in mind.

Here’s a pictorial representation of some of the fund’s portfolio to show the diverse range of companies it invests in. Please note the size of each tile does not necessarily represent the relative size of each position:

A strong income record

The fund has been a consistent income payer since launch, and has a strong performance record under its belt. £10,000 invested at launch on 13th March 2006 has generated £5,014 of income while broadly maintaining the capital invested - despite highly volatile markets along the way. It has also outperformed the IA Mixed 0-35% equity sector over the period rising by 65.5% (with net income reinvested) compared with 45.8% for the sector (Source: FE Analytics 13/03/2006 to 01/07/2018), although past performance is not a guide to the future.

 

Nimble and flexible

The fund is small and nimble, which affords the managers Chris Ainscough and Jeremy Spain significant flexibility. They take advantage of this through positions in shares outside the usual FTSE 100 heavyweights, and are able to meaningfully use alternative sources of yield for diversification such as convertible and preference shares, local authority bonds or investment trusts. However, with a minimum of 45% dedicated to more secure investment grade bonds and cash, the portfolio is designed to maintain a stable core.

With monthly pay outs this fund could appeal to a wide variety of investors looking to achieve a good level of regular income and the potential for some growth in income and capital over time. It is already popular with many customers of Charles Stanley, particularly those with pension drawdown who value the combination of a robust and regular income combined with relatively low volatility of capital.

This website is not personal advice based on your circumstances. No news or research item is a personal recommendation to deal. Investment decisions in collectives should only be made after reading the Key Investor Information Document or Key Information Document, Supplementary Information Document and/or Prospectus. If you are unsure of the suitability of your investment please seek professional advice.

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