The Income Fund gives our clients access to a diverse portfolio of fixed interest investments from around the globe. This fund combines our rigorous investment research with active portfolio management. As well as being an option to invest in this fund as part of a diversified investment strategy across our managed funds, this fund offers an alternative to bank deposits. Your money is invested throughout the world in a range of industries and sectors that are not available in Australasia, providing added diversification. Because this fund is designed to be a more conservative fund there are no investments in shares. You can also access your money at any time and there is a low minimum for investment.
Cash and fixed interest plays an important stabilising role in any investment portfolio. Think of it as something of a financial umbrella to offer your portfolio protection in difficult market conditions. This is because these types of investments are expected to offer more stable, though lower, returns over the long term.
Senior Portfolio Manager
Senior Investment Anaylst
Senior Investment Analyst
Interest rates continued to follow the global growth outlook lower this month. Because bond prices and interest rates move in opposite directions, when interest rates fall like this the value of our assets typically rise. However, our decision to hold fixed interest assets that are even more sensitive to interest rate movements, has provided the Fund with an outsized boost to returns than would have otherwise been expected.
The results out of our portfolio companies this month were generally very pleasing. However, the operational improvement at Boparan (UK food manufacturer) continues to lag behind expectations. While there are now clear signs of a stabilisation in their core business operations, the company still has some way to go in convincing a wider set of investors that a sustainable turn-around is underway. We continue to remain engaged with the company and are closely monitoring the progress they are making on the execution of their new strategy.
The Fund holds a range of different investments, including corporate and Government bonds, as well as cash holdings. See below for more detail on these.
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