Defensive return fund: Aiming for attractive income with capital growth
Attractive, sustainable yield: Targets 4-6%1 p.a. distributed monthly
'Bond-like’ volatility: Targets less than half the volatility of UK equities
Diversified Income Fund – explained
Q3 Fund update
Take 5 with Citywire
Source: Morningstar, NAV based, income reinvested (inclusive of management fees but excluding any initial charge) net of UK basic rate tax, in GBP. 3For illustrative purposes only.
Source: Investec Asset Management.
2Yields quoted are for the I Inc-2 share class of the Fund.
Source: Morningstar, Bloomberg, BofA Merrill Lynch, Investec Asset Management, in GBP. Annualised standard deviation of monthly returns over 3 years. For specific indices information please refer to the important information* section.
The Investec Diversified Income Fund’s portfolio is built from the bottom-up with a focus on quality investments. This bottom-up focus helps to identify individual securities which are not only attractive but which also add defensive characteristics. All investments are chosen for the way they behave in different market environments rather than on their basic labels and exhibit Growth, Defensive or Uncorrelated characteristics.
Investments carry a risk of capital loss. Past performance is not a reliable indicator of future results.
Inc-2 & Inc-3 share classes take their charges from capital. This could constrain future capital and income growth.
Fixed income and multi-asset funds may invest more than 35% of their assets in securities issued or guaranteed by an EEA state.
Specific risks: Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Multi-asset investment: The portfolio is subject to possible financial losses in multiple markets and may underperform more focused portfolios. Developing market: Some countries may have less developed legal, political, economic and/or other systems. These markets carry a higher risk of financial loss than those in countries generally regarded as being more developed. Derivative counterparty: A counterparty to a derivative transaction may fail to meet its obligations thereby leading to financial loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses. This may lead to large changes in value and potentially large financial loss. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates and/or inflation rises.
All information is as at 30.09.17 unless otherwise stated.
1This is an aim and not guaranteed.
Prior to 03.09.12, the Fund was known as the Managed Distribution Fund and was managed to a different investment objective. Dynamic Planner® is a registered trademark of Distribution Technology. Fund ratings may be provided by independent rating agencies based on a range of investment criteria, and do not constitute investment advice by Investec Asset Management. For a full description of the ratings please see www.investecassetmanagement.com/ratings.
The yield reflects the amount that may be distributed over the next 12 months as a percentage of the Fund’s net asset value per share, as at the date shown, based on a snapshot of the portfolio on that day. Where there is a yield number in brackets, it is calculated in the same way, however, as the charges of the share class are deducted from capital rather than income, it shows the level of yield had these charges been deducted from income. This has the effect of increasing the income payable whilst reducing capital to an equivalent extent. Yields do not include any preliminary charge and investors may be subject to tax on their distributions.