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. More information is available in the fund's Key Investor Information Document.
The Income Fund is designed as a complete portfolio, containing a regularly reviewed balance of different assets. It is internationally diversified, including holdings in smaller companies and emerging markets, which otherwise would be difficult and expensive for an individual to buy, particularly those with smaller sums to invest.
The fund has a long, public track record and – like all our investments – is managed according to our ethical principles.
In the end an independent portfolio manager’s claim to existence rests on his ability to relieve his client of worry. Investment - gambling or good sense? // January 1995Read article
Distancing oneself from the mood of the day needs courage and an independent cast of mind. Keeping Perspective // November 2003Read article
Experience suggests that better investment results arise from a long-term investment approach with a focus on quality. We seek companies with sustainable growth prospects, strong and established business models, sound balance sheets, and often a growing stream of dividends.
The fund’s allocation to different assets and geographies is reviewed quarterly by all the senior investment staff. Our team also collaborates on stock selection and monitoring. We draw on a deep well of experience in different markets and cycles. We only invest directly, so we keep full control over every holding.
The fund’s portfolio strategy is based on diversification by asset class and geography. Bond holdings are primarily in relatively short-dated US and UK government issues. The position in gold is designed to provide some protection in the event of a lack of confidence in conventional financial assets.
In recent months, global economic growth has been generally better than expected, although progress in the UK and China has been disappointing. However, the environment may become more difficult as unemployment is beginning to increase, while interest rates seem likely to remain high in the face of stable but persistent inflation. This may lead to a slowdown in the growth of corporate earnings in the short term. Nevertheless, many companies have taken steps to address any loss of momentum, and market valuations already appear to reflect such uncertainties. Taking advantage of the resulting better value in share prices, we raised the fund’s equity weighting from 55% to 60% at the beginning of July. Stock selection is based on identifying companies with pricing power and healthy balance sheets, while the balance of the portfolio is invested in government bonds and gold. This approach should provide a good platform for longer-term investors.
Commentary updated on 31st August 2023.
Whilst the fund is suitable for most retail investors, it is not suitable for investors who require full capital protection. Investors should have a medium to long-term investment horizon (3-5 years) and accept that the value of their investment will fluctuate. The fund will however allow ready access to the investment.
The fund is a UK UCITS authorised unit trust. This means that the manager must follow minimum standards, including holding a diversified portfolio, publishing clear guidance on charges and taking steps to safeguard investors' money. Its structure provides investors with certain institutional safeguards and simplicity of administration.
There are also tax considerations: individuals can defer incurring capital gains tax until units in the fund are sold, and the portfolio of underlying investments are managed without tax constraints.
The fund holds a diversified portfolio of direct investments, as shown on the chart below. Asset and geographic allocations are continually reviewed and adjusted, according to the relative risks and opportunities.
Target portfolio allocations as at 30th September 2023. Actual allocations may vary. To gain exposure to gold, the fund invests in exchange traded commodities (debt securities).
Source: McInroy & Wood other than the UK RPI (Office of National Statistics).
The graph shows the growth in an initial investment of £1,000 over the time period selected assuming reinvestment of income on the xd date. The table shows total return as a percentage in UK sterling including the reinvestment of income on the xd date.
The Annualised Return represents the average annual return of the fund over a set number of years. It is calculated using a geometric average which means that it captures the effects of compounding over the years.
You can assess how well the fund has performed against its objective to grow the real value of investors' capital and income by referring to the change in the UK Retail Price Index (RPI) over the same period.
Please note that the returns shown are historic and should not be taken as a guide to or guarantee of likely future returns. Please be aware that the value of investments and the income they generate may go down as well as up.
1 at 12 noon on 29/11/2023
2 Historic dividend yield reflects distributions declared over the past 12 months as a percentage of the unit price. You should remember that the price of units and the income from them may go down as well as up. Past performance should not be used as a guide to future performance.
Number of units held
Your fund holding value based on the current price1 is:
£658.14
1 at 12 noon on 29/11/2023
Investors may also obtain valuations from our online service. Register / Login
1 A Legacy Class Unit (SEDOL 0558509 & ISIN GB0005585095) existed until the legacy class was closed on 21st December 2016. The Legacy Class Unit was the only class of unit until 1st January 2013 when it was replaced as the principal unit class by the Personal Class Unit. The Personal Class Unit is the only class of unit now available.
Choose from the following four options:
Online | Online Joint Holdings | By post | By telephone | |
Dealing point12 noon valuation following: | Your automated order confirmation that you have placed a deal | Your automated order confirmation that you have placed a deal | Receipt of your application and cleared funds | Receipt of electronic payment |
Lump sum | For individual portfolios only |
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Regular savings | For individual portfolios only |
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Top-up | Following initial investment / registration of existing joint holdings |
Following initial investment / registration of existing joint holdings |
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ISA | ||||
JISA |
Our funds are available through third party platforms, however each company varies in what is offered.
N/A: Not Available
Individuals aged 18 or over who are investing in their own name may purchase units in non-ISA and ISA accounts. If your portfolio is to be held in joint names, the initial investment cannot be made online.
Login RegisterExisting investors may make further investments by telephone. Receipt of cleared funds by bank transfer is required before the order is accepted. Please note we cannot accept ISA investments by telephone. To invest, please call us on 01620 825 867. When placing your order the call will be recorded.
Print the required form then complete and post your application.
For all other forms see our Documents and forms page.
McInroy & Wood Portfolios Limited
Investor Administration
64 St James’s Street
Nottingham
NG1 6FJ
Our funds are also available from various platforms.