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 meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- How to invest for income and growth: SAINTS' James Dow
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Land Rover unveil newest all-electric Range Rover SUV
- Mail Online takes a tour of Gatwick's modern EV charging station
- Leapmotor T03 is set to become Britain's cheapest EV from 2025
- Blue Whale fund manager on the best of the Magnificent 7
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- RUTH SUNDERLAND: Stop cynical Royal Mail bid
- BUSINESS LIVE: Ryanair profits soar; AstraZeneca builds...
- Ryanair profits soar to record high of almost €2bn
- Revealed: The investments that will really make a holiday...
- Britain's new bonkers EV: Callum Skye is an £80k electric...
- Who would qualify for a £100 Nationwide loyalty bonus...
- Cadbury owner Mondelez to face scrutiny over selling...
- Australian miner looking to buy Anglo American set to...
- I was 'brokefished' by my friend for £400 - can I salvage...
- AstraZeneca to construct $1.5bn cancer drugs facility in...
- British Land sells stake in Sheffield's Meadowhall...
- Top industrialist Sir Jim Ratcliffe blames high taxes for...
- Keywords Studios eyes £2.2bn takeover by Swedish private...
- Where it REALLY pays to own a holiday let - how to turn a...
- CITY WHISPERS: Boss Cook-ing up a big sparkler to woo De...
- St James's Place facing humiliating exit from FTSE 100
- Sales at Bloomsbury soar thanks to the craze for...
- Revealed: The seven pensions savings habits that could...