For people who want their portfolio to earn them a regular income.
What it aims to provide
Our other portfolios may generate forms of investment income, such as equity dividends, but they don’t specifically target them. And they usually buy funds designed to automatically accumulate any income into the price of the fund instead of paying it out to the investor.
Income Focus works differently: its only goal is to earn a higher income from a diversified portfolio and to pay that income out to you. Its objective is to earn at least double the income of the relevant Baseline benchmark over each rolling year.
For example, in a year where Baseline Benchmark 5 generates 2.5% income (also known as “yield”) the target of Income Focus 5 will be to earn 5%. There are no income guarantees with this portfolio.
How we build it
We screen bond and equity funds from a variety of different styles, countries and regions for their ability to pay higher yields. We then work with our financial modelling partner – Dorey Financial Modelling- to assess the likely future income levels from those funds. We’re looking for repeatable incomes at a level that can help the portfolio achieve its goal.
The Income Focus portfolio range could be right for you if
• your investment objective requires a higher level of regular income to be earned by your underlying assets
• you will generally prefer this income to be paid out at some frequency rather than reinvested into your portfolio
It is not for you if
• your investment objective requires a focus on capital growth as well as income creation. Please note that although Income Focus invests in assets (primarily shares and bonds) with the potential for long-term capital growth, it has no specific objectives of that kind.
• you require a guaranteed level of income. Income from this portfolio will fluctuate in line with the prevailing levels of income available from global markets
Click the link below to download the August 2024 Income Focus Factsheet
Our portfolios are only available through professional financial planners.
To speak to someone call 020 7702 4488 or email enquiries@mkc-invest.com.