MW Income Fund
 
Fund launch date
 24/03/1994
Fund size
at 18/10/2019
£241m
Personal class
Unit class launch date
01/01/2013
Unit class size
£241m
Current price
per personal unit
at 12pm on
 18/10/2019
 
£26.676xd
Change in price (+/-)
 -£0.014
Dividend yield
 
3.0%
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Your fund holding value based on above price: £

Objectives and policy

The investment objective of the Income Fund is to preserve and to grow the real value of investors’ capital and income, with an emphasis on the generation of income. 

The fund may invest in any geographical area and any economic sector. In accordance with the firm’s ethical principles, the fund has no investments in tobacco companies or companies directly involved in the development of arms.

Composition

The fund holds a portfolio of direct investments in a diversified range of international equities and fixed-interest securities. Asset and geographic allocations are continually evaluated and adjustments are made according to the relative merits of each asset class and the opportunities offered by different international markets.

Structure

The fund is structured as an authorised unit trust. Its structure provides investors with certain institutional safeguards and simplicity of administration. Furthermore, as no tax is suffered on capital gains realised within the fund, there are no tax constraints on active management of fund holdings and individuals benefit from the deferral of tax on capital gains (if any) until the point at which capital is withdrawn.

Asset allocation
  • 1%
    Cash
  • 60%
    Equities
  • 34%
    Bonds
  • 5%
    Gold

If you cannot see this chart, please download the Quarterly Fact Sheet

Geographic allocation
  • 47%
    UK
  • 10%
    Europe
  • 29%
    USA
  • 9%
    Emerging Markets
  • 5%
    Gold

If you cannot see this chart, please download the Quarterly Fact Sheet

 

The portfolio is cautiously positioned. Prospects for the world economy have deteriorated, exacerbated by persistent trade tensions. Many investors believe interest rates will be lowered. However, where rates are already negative, central banks are likely to consider more unorthodox, and less predictable, stimulus measures. Miscalculations could have severe ramifications, particularly if as a result widespread expectations of falling rates prove misplaced.

In the US, growth is slackening. Any slowdown would undermine President Trump's re-election campaign, which will be tied to the prosperity of the country. Political pressures on the Federal Reserve are set to intensify while government expenditure is likely to increase. Trade negotiations between the US and China continue. Despite little progress to date, some accommodation may be possible. Falling demand and a strong dollar have hurt US farmers, a strong support base for President Trump. They may push their government towards a compromise, particularly if the election looks set to be very tight.

The UK's eventual relationship with the EU remains unclear at the time of writing. Prime Minister Boris Johnson's efforts to force through a rapid departure from the trading bloc have deepened divisions. A general election looks imminent. Persistent uncertainty has hurt business sentiment; companies have postponed investment and manufacturing activity is falling. Productivity growth remains disappointing. However, consumers enjoy record low unemployment, rising real incomes and cheap credit, and some sectors have proved resilient even if they would be vulnerable to a general slowdown.

The outlook for the eurozone has worsened. German exports have fallen, and economic sentiment slumped to levels evident during the financial crisis. Trade between member states contracted at its fastest rate for over six years in June. Meanwhile, the European Central Bank's scope for stimulatory responses is constrained.

Elsewhere, Japan still wrestles with deflation despite a cocktail of stimulatory measures. An ageing population restricts domestic growth, while exporting businesses suffer from the strong yen. Yet the country has so far avoided recession and is home to companies with world-leading products.

Long-term prospects for emerging markets remain promising, although the immediate outlook appears difficult. This partly reflects a general slowdown in mature economies but there are also changes to structural trends, namely rising western hostility to globalisation of production. Nevertheless, growth in China and India still outstrips that of developed economies, and some so-called 'frontier markets' are likely to grow even faster. Stock selection in developing markets emphasises family-controlled businesses with long-term strategies.

Government spending may be necessary to spur economic growth and will, in many countries, require further borrowing. Though inexpensive by historic standards, the proportionate level of government debt to GDP has never been higher. It has almost doubled since 2007. Even the most reputable treasuries may find their credentials tested.

Investors have traditionally fled to the safety of real assets when trust in financial assets and cash falls; gold has historically been a store of value during these periods. Its role in the portfolio is threefold: to provide some protection against sharp declines in equity markets; to offer diversification; and to insure against a collapse in global confidence (perhaps even in national currencies).

A focus on high-quality companies with soundly based business positions remains essential in present circumstances. A portfolio of such companies, buffered by a selection of shorter-dated and floating-rate bonds, and an allocation to gold, should continue to provide satisfactory returns in the medium term.

Total return on investment
net of charges and assuming re-investment of dividends

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Total return (£)
Value of initial £1,000 investment
Retail Price Index (RPI)
Total returns
Total return (%)
to 30th September 2019
 
1 year
 
3 years
 
5 years
 
10 years
Since launch
 24/03/1994
Cumulative return
8.5
12.8
33.4
107.1
531.5
Cumulative Retail Price Index (RPI)
2.6
10.3
13.5
36.1
105.3
Annualised return
8.5
4.1
5.9
7.5
7.5
Annualised Retail Price Index (RPI)
2.6
3.3
2.6
3.1
2.9
Discrete annual returns
Total return (%)
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
12 months to 30th September
  • 8.5
  • 2.1
  • 1.9
  • 18.4
  • -0.1
  • 3.9
  • 14.2
  • 12.9
  • -0.4
  • 16.2
Historic prices and dividends
Personal class
Legacy class (closed 21/12/2016)
General
Launch date
24/03/1994 
Manager
McInroy & Wood Portfolios Ltd 
Investment adviser
McInroy & Wood Ltd 
Custodian & Trustee
Bank of New York Mellon (International) Limited 
Fund size (at 18/10/2019)
£241m
Independent auditor
PricewaterhouseCoopers LLP 
Fund status
Authorised unit trust 
Reference currency
GBP 
IA sector
Mixed Investment 40-85% shares GBP 
Valuation and dealing
12pm on each UK business day 
Valuation basis
Forward, single-price basis 
Unit type
Income (reinvestment facility available) 
Min. initial and subsequent investment
£1,000 
Regular savings facility
£100 monthly minimum investment 
Reporting periods
28th February and 31st August 
Current tax year ISA/JISA limits
£20,000 / £4,368 
Dividend information
Ex-dividend dates
1st March, 1st June, 1st September and 1st December 
Payment dates
On or before 30th April, 31st July, 31st October and 31st January 
Most recent dividends:
Personal class
 
 
Dividend
rate
Ex-dividend
date
Payment
date
 Interim
 17.000p
 02.09.19
 31.10.19
 Interim
 17.000p
 03.06.19
 31.07.19
 Final
 29.950p
 01.03.19
 30.04.19
 Interim
 17.000p
 03.12.18
 31.01.19
Unit class
Personal class
Launch date
 01/01/2013
Unit price
(at 18/10/2019)
 
£26.676xd
Dividend yield
 3.0%
SEDOL
 B8KQRW4
ISIN
 GB00B8KQRW41
Fees and charges
Personal class
Initial charge
 Nil
Ongoing charges figure
 1.14%
(including 1.00% annual management charge)
Exit charge
 Nil
Performance fee
 Nil

If you are considering investing in the fund or wish to manage existing investments all the information and forms you need can be downloaded using the links below. All investments require the completion of the appropriate form which should then be sent to the postal address below.

Our funds are also available from various platforms. These are categorised as either Retail (for anyone investing directly in their own right) or Advisor (for investments made via a professional intermediary).

Please do not hesitate to contact our Unit Trust Team should you have any questions.

Fund documentation
Contact us
If you require further information or clarification, or would simply like to discuss any aspect of the services we provide, please call us on the number below and we will make sure the right person speaks to you.

Telephone

+44 (0)1620 825 867

Postal address for mailing of all forms

McInroy & Wood Portfolios Limited
PO Box 12177
Chelmsford
CM99 2EA

Forms
Application – for initial investments and regular savings plans
Transfer – to move existing ISA/JISA investments
Top up – to add to existing investments
Switch – to move investments between funds
Other

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