Trustnet Magazine 62 May 2020 | Page 18

Your portfolio 34 / 35
Mosaic
Portfolios
To minimise risk,
we leave no
stone unturned
compared with 2 per cent or 3 per
cent for its peer group [and was]
growing this part of its business
two or three times faster than its
competition,” he says.
Getting creative
These bright spots aside, equity
income investors may have to get
creative, and one obvious alternative is
investment trusts.
The AIC’s communications director
Annabel Brodie-Smith says: “A big
advantage for trusts over funds is their
ability to hold cash reserves, so many
are well prepared for this.”
Research from Investec suggests
income-yielding trusts could continue
to pay dividends from reserves for
another year, even if portfolio income
falls 30 per cent, with eight trusts able to
do so for two years. Top names include
City of London and Merchants – both
Research from Investec
suggests income-yielding
trusts could continue
to pay increased
dividends from reserves
for another year even if
portfolio income falls 30
per cent
AIC Dividend Heroes, classed as those
that have increased payments for at
least 20 years in a row.
Many investors may also find
themselves looking beyond equities
for income and towards the bond
universe. However, with enormous
levels of quantitative easing turning
developed market government bond
yields negative in real terms, and
The new Mosaic Portfolio range from FE Investments
delivers a choice of solutions to match your clients’ risk profiles.
Carefully crafted using a selection of holdings – or‘tiles’ –
across asset classes, they are designed to maximise diversification
and protect your clients’ wealth.
Find out more at fefundinfo.com/en-gb/mosaic
Capital atrisk. For financial advisers only.
FE Investments is a trading name of Financial Express Investments Limited,
which is authorised and regulated by the Financial Conduct Authority.
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