Rathbone High Income Fund
Definition of product
- Focused portfolio of UK and European equities, including property shares, with a cash element
- Target yield of 30% above that of the FTSE All Share index
- Quarterly pay-out of income
Fund objective
The objective of the fund is to achieve above average and maintainable income but without neglecting capital security and growth. The manager intends to achieve the objective primarily through the purchase of transferable securities with an above average yield. There is no restriction on the economic sectors or geographic areas in which the fund may invest; however, investments will be predominantly in the ordinary shares of UK and European companies.
Investment style
The fund is a focused list of UK and European companies which possess favourable long-term economics, attractive dividend yields and potential for dividend growth. An emphasis is placed on high-return businesses which enjoy a competitive advantage versus their peers, and exposure to attractive end-markets. Holding periods will normally be in years rather than months inorder to benefit from underlying fundamentals and dividend growth. For diversification, a portion of the fund is invested in property shares.
Why invest?
- Rising total income payments
- Long-term capital appreciation
Available for lump sum investment or regular savings into an ISA or as an unwrapped unit trust lump sum or savings plan. Charges are 5.5% initial charge and 1.5% per annum annual management charge.
"Investors in our funds will be treated as 'retail clients' for the purpose of dealing in units either when buying units from us or selling them back to us. You will enjoy all the protections provided to retail clients by the regulations."
The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance should not be seen as an indication of future performance. The Manager’s annual fee is taken from capital.