F&C HIGH INCOME - Fund overview

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Overview of F&C HIGH INCOME

This fund aims to provide investors with an annual yield of UK base rate plus 2%, payable monthly. The portfolio comprises 70% bonds / 30% equities, supplemented by a derivatives overlay to boost income and capital returns. Though the fund targets long term capital preservation, it has experienced some substantial drawdowns over its history.

Standard Initial Charge

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Fund summary

Sector	UK Equity and Bond Income
Product type	UNIT TRUST
Launched	January, 1993
Size	£192m
Yield	5.7%
Charging basis	INCOME
Dividends paid	28th of each month.
Bid price	17.61p

Fund Charges

Standard Initial charge	5.00%
Initial charge via Bestinvest	0.00%
Additional bid/offer spread	0.48%
Annual management charge	1.50%
Total expense ratio	1.69%
Reduction in yield (10yr)	1.74%

Bestinvest says

No information available.

Portfolio

f&c high income asset allocation illustration

Allocation		Proportion

	Equity	32%
	High yield bonds	–
	Quality bonds	68%
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	–

f&c high income equity geographic illustration

Allocation		Proportion

	UK	100%
	Europe	0%
	Nth America	0%
	Japan	0%
	Pacific	0%
	Other Equity	0%

f&c high income equity capitalisation illustration

Allocation		Proportion

	Large Caps	98%
	Mid Caps	2%
	Small Caps	0%

View all performance data for F&C HIGH INCOME

Investment process

The fund’s objective is to provide a monthly income of 2% p.a. over the Bank of England base rates, whilst keeping fluctuations in the unit price to a minimum. The portfolio comprises around 30% blue chip equities, designed to track the FTSE 100 index, plus 70% quality bonds (minimum A rating) – these are generally equally split between government and sterling corporate bonds, plus some structured products. This core portfolio is supplemented by a derivatives overlay strategy, which F&C view as a third asset class. This is designed to make up any shortfall in income from the equities and bonds and, unlike those assets, this part of the portfolio is actively managed. Two types of traded are generally undertaken: (1) Using index or variance contracts to exploit differences between implied and future variance; (2) Positions designed to benefit from the differences between implied and realised correlations of an equity index and its constituents.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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