Bestinvest says
The allocation between fixed income and equity is not expected to change materially over the cycle (+/- 5%). Equity turnover is low. There are no formal tracking error constraints, portfolio positioning being driven by the bottom up stock selection process. The structural allocation to index linked UK gilts has resulted in lower levels of volatility relative to peer group funds that have focused more on corporate bonds for fixed income exposure. However, overall income distribution levels should be expected to be lower.
The fund's objective is to provide investors with distributions that over the longer term exceed the interest generated by the highest rate building society deposit, along with some capital appreciation. Although Jim Stride is the named fund manager for the Distribution fund there is a great deal of input from other managers working within the Fixed Interest and Global Equities. His main area of expertise is in the formulation of the the fund’s asset allocation policy. The allocation between fixed income and equity is not expected to change materially over the cycle (+/- 5%). Equity turnover is low. There are no formal tracking error constraints portfolio positioning being by product of the stock selection process.