Video: Charles Stanley Monthly High Income Fund update

This fund blends together a wide variety of income ideas while aiming to preserve capital.

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  1. Rob Morgan

Generating a reliable and regular income from investments can seem daunting in turbulent markets. Often income received fluctuates less than capital values, but there is a need to select investments carefully to try and ensure this is the case.

One fund that takes a conservative approach to generating income is MI Charles Stanley Monthly High Income. It 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 in mind. It’s a broad, income-producing portfolio in a single, low-cost fund, actively managed by Charles Stanley's investment team.

The latest stated yield is 4.3%, though this is variable and not guaranteed. Although some funds in its peer group might pay a little more MI Charles Stanley Monthly High Income takes a straightforward approach, avoiding complex derivatives and other artificial means of increasing income.

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 £5,091 of income while broadly maintaining capital over the period - despite highly volatile markets along the way. It has also outperformed the IA Mixed 0-35% equity sector over the period rising by 66% (with net income reinvested) compared with 47% for the sector (Source: FE Analytics 13/03/2006 to 31/07/2018), although past performance is not a guide to the future.

Past performance is not a reliable indicator of future returns. Figures are net of fees and shown on a total return basis, bid to bid price with net income reinvested; Source: FE Analytics, launch of fund 13/03/2006.

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.

In this video update, co-manager Chris Ainscough explains how the fund invests in more detail and outlines some of the recent changes in the portfolio.

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, Supplemental Information Document and/or Prospectus. If you are unsure of the suitability of your investment please seek professional advice.

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