While other MKC Invest portfolios may generate income such as dividends, they do not specifically target income and typically reinvest it within the portfolio.

The Income Focus range is designed with a different objective: to generate a higher level of income from a diversified portfolio and distribute that income to investors.

Its target is to produce at least double the level of income generated by the relevant Baseline Benchmark over each rolling year.

For example, if Baseline Benchmark 5 produces an income yield of 2.5% in a given year, the target for Income Focus 5 would be to generate 5%. Income levels are not guaranteed and will vary over time.

We review bond and equity funds across different investment styles, countries and regions to identify those with the potential to generate higher levels of income.

Working with our financial modelling partner, Dorey Financial Modelling, we assess the potential future income levels of these funds. The aim is to identify funds capable of producing repeatable income that may help the portfolio achieve its objectives.

• Your investment objective requires a higher level of regular income from your investments  
• You prefer income to be paid out periodically rather than reinvested within the portfolio