Golf model portfolio - immediate income, medium risk

Who is it for: 
  • Investors looking primarily for a high starting income and to maintain the value of their capital.
  • However, 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 seeking to maximise their income who are not so concerned about their income increasing over time.
  • May also appeal to investors approaching retirement who can opt to reinvest their dividends until required.
What it looks like: 
Fund Role in portfolio
Baillie Gifford Corporate Bond Invests in different types of corporate bonds to generate a high monthly income. View Factsheet
City of London Invests mainly in well-known blue chip UK-listed companies and has been increasing its annual income for nearly 50 years. View Factsheet
Picton Property Income Trading on a more reasonable premium of around 2 per cent compared to its predecessor F&C Commercial Property. View Factsheet
Invesco Perpetual Monthly Income Plus Solid UK equity income performer with regular payouts. View Factsheet
Premier Optimum Income Produces an enhanced income by selling options on its underlying share portfolio. View Factsheet
Artemis High Income A stalwart UK equity income fund. View Factsheet
Why were these funds selected: 

In order to provide investors with a regular basic monthly income as well as some capital security, this portfolio has two fixed income holdings – Baillie Gifford Corporate Bond and Invesco Perpetual Monthly Income Plus, the latter also has some equity content for growth. There are then two income stalwarts – City of London, an investment trust with a history of increasing its annual dividends for nearly 50 years, and Artemis High Income, a strategic bond fund.

Premier Optimum Income has not only achieved a 7 per cent yield but also significantly outperformed on a total return basis. Picton Property Income continues its strong performance.

Click here to view the live Golf portfolio factsheet

Where to get it: 

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Timeline: 

2018

  • Sell Schroder Income Maximiser

    The fund has been underwhelming since Thomas See left in July 2016.

  • Buy Premier Optimum Income

    An outperformer on a total return basis over the past three years

2018

  • Sell Threadneedle UK Equity Income

    Replaced with Artemis High Income, a strategic bond fund.

  • Buy Artemis High Income

    The fund has a 16 per cent weighting in the portfolio

    2017

    • Sell F&C Commercial Property

      Premium too high

    • Buy Picton Property Income

      Much more reasonable premium of 2 per cent compared to its predecessor.

    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.

    • Sell Temple Bar

      Contrarian approach has produced disappointing capital performance.

    • Buy City of London

      Conservatively managed UK large cap fund with long record of dividend increases.

    2015

    • Sell Fidelity Moneybuilder Income

      Falling yields making this area less attractive.

    • Buy Baillie Gifford Corporate Bond

      High yielding, strategic, go-anywhere fund with greater scope to adjust to changing circumstances.

    2014

    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 M&G Corporate Bond

      With outlook for equities improving, this fund sold to reduce bond exposure.

    • Buy Threadneedle UK Equity Income

      Provides better income growth potential than bonds, and prospect of capital gains.

    2012

    • Buy Fidelity Moneybuilder Income

      Provides exposure to high-quality investment-grade bonds for security of income and capital.

    • Buy Invesco Perpetual Monthly Income Plus

      Invests mainly in bonds, but can hold up to 20 per cent in equities.

    • Buy M&G Corporate Bond

      Provides exposure to high-quality investment-grade bonds for security of income and capital.

    • Buy M&G Optimal Income

      Strategic, go-anywhere bond fund.

    • Buy Schroder Income Maximiser

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

    • Buy Temple Bar

      Invests mainly in large blue chip companies and has long record of growing its income.

Last updated: 
17 January 2018