Juliet model portfolio - immediate income, higher risk

Who is it for: 
  • Investors looking primarily to maximise their starting income and to maintain the value of their capital who are prepared to take greater risks with their capital to achieve these aims.
  • Investors must be able to afford for their income to fall and to lose some of their capital under a worst case scenario.
  • May be suitable for retired investors with other secure sources of income who are seeking to maximise the income returns from their capital.
  • May also appeal to investors approaching retirement who can opt to reinvest their dividends until required as part of a growth strategy.
Juliet Money Observer model portfolio icon
What it looks like: 
Fund Role in portfolio
Artemis Global Income Invests in strong companies globally for income, has low UK content. View Factsheet
F&C Commercial Property Commercial property is still an attractive source of income and the investment trust has a strong performance record. View Factsheet
TB Wise Income Looks for attractive income-paying assets across the widest spectrum. View Factsheet
Marlborough Global Bond Highly diversified bond fund which aims to produce a high, low risk, income. View Factsheet
Rathbone Income Reliable UK equity income performer. View Factsheet
Schroder Income Maximiser Produces an enhanced income by selling options on its underlying share portfolio. View Factsheet
Why were these funds selected: 

Although consisting mainly of equity funds, this portfolio contains a mixture of three asset classes. Marlborough Global Bond gives it a broad based fixed interest content with an above average yield for its sector. F&C Commercial Property provides property exposure and the benefit of strong rental income.

For its UK equity content, the portfolio includes a solid UK equity income fund – Rathbone Income. Schroder Income Maximiser also holds a conventional UK equity income portfolio with its income given a boost through its options strategy although its growth can be more erratic short term. TB Wise Income can invest in income-paying assets across the widest spectrum, including fixed interest, commercial property, shares and alternatives such as private equity and infrastructure, anywhere in the world. Finally, Artemis Global Income gives the portfolio its international exposure.

* Charts show bid-to-bid performance with income reinvested.

Please note that past performance is not a guide to future performance. Fund performance data does not take into account fees and expenses which are specific to individual plans.

Please be aware of the risks involved. Money Observer does not provide investment advice. You should choose investments to suit your personal circumstances and attitude to risk. If you are at all unsure you should seek advice.

Where to get it: 

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Timeline: 

2017

  • Sell Invesco Perpetual Income

  • Buy TB Wise Income

    Can invest in income-paying assets across the widest spectrum.

2016

  • Sell Henderson UK Property

    We feel it would be highly advantageous to hold our property exposure in a closed-ended fund.

  • Buy F&C Commercial Property

    Provides attractive source of income and has strong performance record.

2015

  • Sell AXA Global High Yield

    Concerned about narrow focus on high yield bonds.

  • Buy Marlborough Global Bond

    Well diversified fund with scope to invest in all types of bonds.

2014

  • Sell CF Miton UK Multi Cap Income

    Soft closed.

  • Buy Rathbone Income

    Dependable multi cap UK equity income fund.

  • Sell Schroder Global Equity Income

    Change of manager.

  • Buy Artemis Global Income

    Good international diversification with low exposure to the UK.

2013

  • Sell M&G Optimal Income

    Falling yield has made fund less attractive for immediate income seekers.

  • Buy Henderson UK Property

    More attractive yield and scope for income and capital growth.

  • Sell Kames High Yield

    Disappointing performance.

  • Buy CF Miton UK Multi Cap Income

    Attractive yield with bias towards small and medium sized companies.

  • Sell Murray International

    Premium to net asset value too high making it unattractive to new investors.

  • Buy Schroder Global Equity Income

    Invests internationally in solid companies with stable business models.

2012

  • Buy AXA Global High Yield

    Provides high income from high yielding global bonds.

  • Buy Kames High Yield

    Provides high income from high yielding global bonds.

  • Buy Invesco Perpetual Income

    Solid UK equity income performer.

  • Buy M&G Optimal Income

    Strategic, go-anywhere bond fund.

  • Buy Murray International

    Provides global diversification with significant exposure to Asian and emerging market equities.

  • Buy Schroder Income Maximiser

    UK equity income fund with enhanced yield from sales of options.

Last updated: 
16 January 2017