Good income hunting

Sam Slator 20/10/2016 in Income investing

Every now and then we take a look back over our most popular articles and search terms to see what you have been reading and what kind of information you’re looking for us to provide.

And no surprises in our current low rate environment, income has been the theme of the year!! With bonds around the world heading into negative yields and UK companies cutting dividends, it seems everyone is on the hunt!

Some are searching for the best yield among bond sectors, while many have turned to global equities in an attempt to boost and diversify their portfolio income.

Below are our five most viewed Elite Rated income funds in 2016¹, as well as their returns for UK investors so far this year. Don’t forget, global income funds’ total returns have been boosted by the falling pound, as income earned overseas is now worth more when converted back into sterling.

1. Invesco Perpetual Monthly Income Plus

Total returns year-to-date: 5%²
Annual historic income: 5.6%³

Invesco are widely considered to be one of the UK’s best bond houses and the Invesco Perpetual Monthly Income Plus fund is their flagship product. It invests in UK investment grade and high yield bonds, and may also hold up to 20% of its portfolio in UK equities if the managers see fit.

2. Woodford Equity Income

Total returns year-to-date: 3.8%4
Annual historic income: 3.3%5

Neil Woodford’s infallible reputation for understanding the macroeconomic environment and investing accordingly have stood him in good stead this year, with plenty going on in global economies. The Woodford Equity Income fund takes a long-term approach and invests in cash-generative companies, but while recognising external factors that may impact prices and industries in the short term.

3. Newton Global Income

Total returns year-to-date: 28.4%6
Annual historic income: 2.9%7

Moving into global equity income sectors, the manager on the Newton Global Income fund looks for stocks yielding at least 25% more than the FTSE World index and will sell companies if they no longer meet this criteria. Research starts with thematic analysis, finding sectors that may be expected to outperform and then looking for opportunities within those sectors.

4. Artemis Global Income

Total returns year-to-date: 19%8
Annual historic income: 3.3%9

The manager on the Artemis Global Income fund tries to ‘think outside the box’, looking for less well-known names instead of stereotypical dividend-paying stocks.

5. Evenlode Income

Total returns year-to-date: 19.8%10
Annual historic income: 3.4%11

Evenlode Income has been a star performer since the Brexit vote, with the fund positioned in high quality, defensive businesses in the UK. It has a significant weighting to large caps, which did very well following the referendum, as these companies who earn a lot of their revenues overseas can benefit from a falling pound.

¹Google Analytics,, page views 01/01/2016–19/10/2016
2,4,6,8FE Analytics, funds’ total returns in GBP, 01/01/2016–19/10/2016
3,5,7,9,11FE Analytics data on fund notes, updated 01/10/2016

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.