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Launching our new income fund – British Enhanced Income

Launching our new income fund – British Enhanced Income

We’ve built the British Enhanced Income fund especially for those looking for income from high-quality, home-grown investments. It’s a fund made up of our top investment ideas and is a really simple way to invest, as instead of buying a range of funds and managing them yourself, you just pick the British Enhanced Income fund and we do the rest.

The fund aims for a yield of 4%, although this isn’t guaranteed and income yields may be higher or lower than the target. It focuses on British investments, which have a reputation as some of the highest-yielding. UK companies pay the reliable, healthy dividends that income investors rely on – the UK is home to world-beating businesses, with business models that are truly global in breadth. For instance, Diageo sells its drinks to customers in more than 180 countries. Such a wide consumer base provides diversification.

A target 80% of the portfolio will be invested in the UK. Just over half of the fund is invested in equities. You’ll also find bonds and, to a lesser extent, other investments such as property and hedge funds for diversity. This fund is for investors comfortable with moderate risk and remember that the income produced and the value of the investment can go down as well as up. Below, we detail some equity, bond and property funds that British Enhanced Income invests in.

When you’re ready to invest, you can do so quickly and easily here. If you have any questions about the fund or your investments in general please call 020 7189 2400, request a call back or email us at best@bestinvest.co.uk.

UK Equities

Threadneedle UK Equity Income – a five-star, highly rated fund

Manager Richard Colwell enjoys football in his spare time. Much as how a football team’s ‘4-4-2’ formation is designed to balance the whole width of the playing field, Colwell takes a balanced approach to investing. This is opposed to other UK income funds, which can be more aggressively or defensively positioned.

Colwell prefers companies with ‘solid’ management – in his fund’s portfolio are pharmaceutical giants AstraZeneca and GlaxoSmithKline and British supermarket Morrisons.

Woodford Equity Income – the headline hitter

Neil Woodford is a veteran of the UK fund management scene and has a strong track record dating back to 1988. Such is Woodford’s stature that his comments on topics such as Brexit receive widespread attention in the UK press. His defensive investment style is sometimes out of favour, however, we expect it to serve him well over the long term.

His style means he leans towards more predictable industries, such as healthcare, but he recently took a position in Purplebricks, the online estate agency that promises to shake up that market.

JO Hambro CM UK Opportunities – a tough selection process

Manager John Wood has rigorous selection criteria. His focus on ‘quality’ companies leads to a portfolio that typically contains just 25-40 stocks – only his strongest investment ideas, from a pool of 60-70 that meet his criteria, make it in. He primarily invests in FTSE 100 and FTSE 250 companies, searching for those that are well-managed and have strong balance sheets with predictable cash flows.

The companies that fit Wood’s bill? Well-known names such as Capita, Unilever and Travis Perkins.

Bonds

TwentyFour Corporate Bond a new fund

TwentyFour launched this new fund in January 2015, with manager Chris Bowie at the helm – Bowie successfully led Ignis’s corporate bond fund between 2009-2014. He primarily invests in investment grade bonds, but he also has a mandate to invest up to 20% in high yield or floating rate bonds.

Fidelity Extra Income – an experienced, high-profile manager

Ian Spreadbury and Sajiv Vaid co-manage this fund – Spreadbury is high-profile and recently celebrated 20 years of managing his other income fund, Fidelity MoneyBuilder Income. Vaid joined him on this fund in 2015 from Royal London Asset Management. They aim to achieve a high level of income by building a hybrid portfolio investing in high yield and investment grade bonds.

Property

UK Commercial Property Trust – access to UK properties

This trust is managed by Standard Life’s real estate team. It invests in properties such as the Rotunda centre in Kingston upon Thames, which houses a 14-screen IMAX cinema, and the Ocado distribution centre in Hatfield.

 

How to invest in the British Enhanced Income fund

When you’re ready to invest, you can do so quickly and easily here.

 

Investments in the British Enhanced Income portfolio can change. These holdings are correct as at 09 March 2016. The fund’s full name is IFSL Tilney Bestinvest British Enhanced Income.

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. 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; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

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