Bestinvest says
This fund is an alternative to an equity income portfolio and follows a more balanced approach towards enhancing income, whilst aiming to reduce the volatility of underlying capital. The fund has experienced a number of fund managers changes in recent years and as such we would like to give the current team time to bed down before we consider the it for a rating. Our favoured fund in this space is Invesco Perpetual Distribution.
This fund is split between UK equities, corporate bonds and gilts. It also has the ability to invest a small portion of the fund in variable rate and index related securities, debentures, asset or mortgage backed securities. Derivatives may be used to manage any exposures resulting from currency denomination, differential interest rates or credit rating weights.
John Pattullo is responsible for the relative equity / fixed interest allocations. The UK equity portion is managed by Chris Burvill who focuses on stocks that pay above average dividends and are characterised with strong management, a clear business strategy, strong cash flow, growing profits and rising dividends. Stocks will be sold when their yield falls below that of the market average. The corporate bond portion is managed by Jenna Barnard, she assesses economic and thematic drivers to form a view on duration and sector allocation (medium term corporate bond strategy), and then carries out in depth stock selection analysis.