F&C Managed Portfolio Trust: Going global for income
Savers who want a long-term income from shares are being encouraged to think globally. That is the approach of F&C Managed Portfolio Trust (Income), which yields 4.5 per cent.
This investment trust is a fund of funds. Manager Peter Hewitt has a free hand to invest in investment trusts that pay a decent dividend and that he thinks will perform.
This freedom makes for an eclectic portfolio, with investments in trusts that produce income from British, Asian and European shares, property and bonds.
Recent purchases include JPMorgan Emerging Markets Income and 3i Infrastructure, which invests in transportation, utilities and schools around the world.
One problem with a fund of funds is that investors can face double charging - those for the manager of the main fund, plus charges for the managers of the funds they buy.
But Managed Portfolio Income is structured to keep charges keen. As well as the income funds, a sister portfolio concentrates on growth but is managed as part of the same trust. This helps keeps costs low.
Investors can choose to buy growth shares or income shares, or both, which are separately listed on the stock market. But each portfolio is independent and profits or losses on one class of share will not affect the other.
Ben Willis, head of research at investment adviser Whitechurch Securities in Bristol, says: 'This is an interesting concept. The total expense ratio at just over 1.5 per cent is competitive for a fund of funds, especially against some unit trust peers.' Investment trust rules allow Hewitt to borrow against the fund's assets to make extra investments.
›› See historic performance charts
FACTS AT A GLANCE
SIZE AND RETURNS: £23 million. One year, +26%; since launch, +3%.
MANAGER AND TENURE: Peter Hewitt since launch in April 2008.
THE BIG RIVALS: Jupiter Merlin Income Portfolio, Aberdeen Multi-Manager UK Income Portfolio.
HOW TO INVEST: As a listed share, the trust can be bought through any UK stockbroker, subject to commission and a stamp duty of 0.5 per cent. F&C runs a share plan allowing regular saving from £50 per month in an Isa with a minimum lump sum investment of £500.
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Ray Massey walks us through the new Ferrari 12Cilindri
- Mail Online takes a tour of Gatwick's modern EV charging station
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- AJ Bell launches 'ready-made pension' to help savers find...
- Cheaper energy deals could be back by winter as Ofgem...
- Greggs sales soar as baker's expansion plans roll on with...
- Taxpayer stake in NatWest falls below 27% as Treasury...
- Currys shares surge after profit guidance upgrade as...
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- London estate agent known as Mr Super Prime to star in...
- Anglo American to restructure operations as it rejects...
- Digital marketing firm Mission Group snubs takeover offer...
- I don't want smart meters, so Eon is charging me £316 to...
- Virgin Money UK warns of pressure on profits ahead of...
- US owner of Boots steps up efforts to find a buyer for...
- Investors ramp up bets against BT as new boss prepares to...
- Santander offers £175 to switch your current account -...
- Gamestop shares double as 'meme stock' social media...
- Marston's losses narrow amid hopes of summer sporting...