The manager of the Rathbone Strategic Income Portfolio has warned of the danger in chasing a high income target in the current "stressed" environment and said that the fund's lower income target of 3% allowed it to position itself in better-performing "growthier names".
Will McIntosh-Whyte, who manages the fund with head of multi-asset investments David Coombs, said this meant the fund did not have to sit in "broken businesses" just because they offered a yield. Addressing the raft of dividend cuts and cancellations in 2020, McIntosh-Whyte said: "We have tried not to make wholesale changes and say, 'that dividend has gone, we need to sell that business' and move into another business that has maintained its dividend." Home and dry: UK equities safe from dividend cuts as Lockdown 3.0 continues The portfolio kept hold of its position in pest control...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
