Bestinvest says
Bestinvest rate the funds of Richard Woolnough, manager of the bond portion of the fund, but not those of named manager Richard Hughes. Therefore we suggest investors looking for the same approach consider one of our recommended UK equity income funds, combined with one of our recommended UK corporate bond funds.
The Fund aims to achieve a high income stream which also increases over time, by investing mainly in a range of UK equities. The fund also invests in high quality corporate bonds to aid income generation - target yield is 50% higher than that of the FTSE All-Share index.
The equity component of the fund is run using a bottom-up process (analysing companies in their own right), looking for high yielding stocks with strong business franchises, good cashflow characteristics and attractive dividend growth prospects. The yield requirement means the fund primarily comprises large and mid cap stocks and will have a bias towards the higher yielding sectors.
The bond component of the fund comprises mostly investment grade (quality) bonds denominated in sterling, though high yield and government bonds may also be included. This area of the portfolio is managed by Richard Woolnough, who combines his views of the likely direction of economic factors such as economic growth, inflation and interest rates with a bottom up approach, when selecting individual bonds for the portfolio.