When you’re relying on your savings to generate an income, you want to know they’re working hard. A cash account might not cut it. The monthly income fund may be more appealing.
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The monthly income fund aims to pay roughly the same amount of income each month^ so that you can budget with confidence. The fund targets an above-market income that is sustainable and consistent, as well as some capital growth, over the long term†.
We think of delivering a sustainable income as a bit like a jigsaw puzzle – all the pieces have to be in place for the picture to come together. Assets will yield differently at different times, so we will strategically combine diverse sources of income to target a high and resilient yield, year-in, year-out.
We will invest in income funds, whose underlying assets may include UK and overseas equities, bonds, gold and targeted absolute return strategies. Assets such as property and infrastructure, which are renowned for their income-paying potential, are also expected to contribute to the fund’s yield.
We believe in transparency, so you can see a full list of what the VT Chelsea Managed Monthly Income fund invests in below.
|Fund name||% of fund||Asset class|
|Greencoat UK Wind PLC||4.01||Alternatives|
|M&G Global Dividend||4.00||Equities|
|Sequoia Economic Infrastructure Income Fund Ltd||3.99||Fixed Income|
|Man GLG UK Income Professional||3.89||Equities|
|TB Guinness Global Eq Inc Y Inc||3.88||Equities|
|Doric Nimrod Air Two Ltd||3.75||Alternatives|
|Supermarket Income REIT PLC||3.68||Property|
|TB Evenlode Global Income||3.63||Equities|
|Target Healthcare REIT Ltd||3.59||Property|
|iShares $ Treasury Bd 1-3yr UCITS ETF GBP Hgd Dist||3.53||Fixed Income|
|Bluefield Solar Income Fund Ltd||3.50||Alternatives|
|Invesco US Treas Bd 7-10 Year UCITS ETF Dist||3.43||Fixed Income|
|FTF ClearBridge Gbl Infrastructure||3.43||Equities|
|Hipgnosis Songs Fund Ltd||3.40||Alternatives|
|Man GLG Sterling Corporate Bd Prof Inc D||3.35||Fixed Income|
|Artemis Target Return Bond||3.26||Fixed Income|
|iShares $ TIPS UCITS ETF GBP Hgd Inc||2.68||Fixed Income|
|Artemis Corporate Bond||2.60||Fixed Income|
|Nomura Global Dynamic Bond||2.60||Fixed Income|
|Schroder Asian Income||2.25||Equities|
|Man GLG High Yield Opportunities||2.16||Fixed Income|
|Montanaro UK Income||2.09||Equities|
|Round Hill Music Royalty Fund Limited||2.07||Alternatives|
|M&G Emerging Markets Bond||2.05||Fixed Income|
|GCP Asset Backed Income Fund Ltd||1.66||Fixed Income|
|Montanaro European Income||1.49||Equities|
|Artemis Global High Yield Bond||1.47||Fixed Income|
|BlackRock Continental European Income||1.22||Equities|
|Chrysalis Investments Ltd||1.12||Equities|
|Renewables Infrastructure Group Ltd||1.03||Alternatives|
|Montanaro UK Smaller Companies Investment Trust PLC||0.93||Equities|
|GCP Infrastructure Investments Ltd||0.74||Fixed Income|
|Doric Nimrod Air Three Ltd||0.62||Alternatives|
|Polar Capital Technology Trust PLC||0.54||Equities|
|iShares $ Treasury Bond 20+yr UCITS ETF GBP H D||0.45||Fixed Income|
|Impact Healthcare REIT PLC||0.43||Property|
Information correct as at 31/08/2023. Please note percentages may not add up to 100% exactly due to rounding errors
It’s important to understand investments can go down as well as up in value. You may not get back the amount originally invested. Income payments are not guaranteed.
^Income will be smoothed to pay a roughly level amount over 11 months, with a final adjustment payment in the 12th month, which may be more or less than the regular payment. Please note that income payments may take a few months to regulate following fund launch.
†Long term is 5+ years. The aim is to have lower volatility than global equities over a rolling 5-year period.
**FE Analytics 05/06/2017-31/08/2023 VT Chelsea Managed Cautious Growth vs IA Mixed Investment
The VT Chelsea Managed Funds are for investors who prefer to make their own investment decisions, without personal advice.
Valu-Trac Investment Management Limited is the authorised corporate director (ACD) and investment manager of the VT Chelsea Managed Funds. Valu-Trac is authorised and regulated by the Financial Conduct Authority (FCA). Valu-Trac’s FCA registration is 145168. Chelsea Portfolio Management Services Limited will be the investment adviser for the VT Chelsea Managed Funds.