MW Income Fund
 
Fund launch date
 24/03/1994
Fund size
at 18/09/2020
£216m
Personal class
Unit class launch date
01/01/2013
Unit class size
£216m
Current price
per personal unit
at 12 noon on
 18/09/2020
 
£26.374xd
Change in price (+/-)
 +£0.078
Historic dividend yield 1
 
2.7%
1 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.
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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holdings and individuals benefit from the deferral of tax on capital gains (if any) until the point at which capital is withdrawn.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
  • 65%
    Equities
  • 29%
    Bonds
  • 5%
    Gold

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Geographic allocation
  • 47%
    UK
  • 11%
    Europe
  • 27%
    USA
  • 10%
    Emerging Markets
  • 5%
    Gold

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Prospects for world economic growth have been overwhelmed by the massive and unprecedented disruption caused by the coronavirus pandemic.  However, business activity has now started to pick up as lockdown measures have been relaxed in many countries.  The extent of this recovery has varied widely, depending on the severity of outbreaks of the virus and the capacity of governments to subsidise employment and wages.  China was initially hit hard by the pandemic, yet its economy is now expected to grow by 3% over the full year.  Latest expectations for the US still envisage a strong rebound, but this assessment may prove over-optimistic if rising cases of the disease force a widespread return of social restrictions.

Public sector borrowing is rising dramatically almost everywhere as a result of irresistible political pressure to
‘do what it takes’ to maintain living standards.  At this stage, there is no evidence of any inflationary pressures arising from the resulting looseness of monetary and fiscal policies, but any sustained economic revival may well be accompanied by sharp rises in consumer prices.

Governments have directly intervened in an unprecedented way into a wide range of commercial activities. Financial and regulatory support for ‘national champions’ is likely to undermine competition at a time when international trading relationships are already under threat. Against this background, it is alarming that the nature of the UK’s future relationship with Europe remains unresolved. The US presidential election in November also looks set to be particularly divisive.

The asset allocations in the portfolio have been relatively defensive for several years, but the investment case for holding government bonds has weakened in the face of shrinking, and in some cases negative, returns. At the same time falls in equity markets earlier in the year offered some attractive investment opportunities, even if the outlook for earnings remains vulnerable in the short-term. Accordingly, the equity allocation was increased to 65% in March, with a corresponding decrease in the bond holdings. 

Stock markets have rallied in recent months, reflecting assumptions that there will be a robust economic rebound in the second half of the year. Depressed interest rates are also supporting asset valuations. Much will depend on the availability of any effective treatment for the virus, but there appears to be an acceleration in the positive trends that already favour some of the fastest growing companies in sectors such as communications, healthcare and technology.

It is too early to make a definitive judgement on the shape of the recovery. Unsurprisingly, the reopening of economies has seen rising numbers of coronavirus cases. Recent sharp gains in share prices have left many equities looking fully valued. Our investment strategy continues to be relatively cautious. We favour a broad diversification of assets, including some allocations to bonds and gold in balanced portfolios.

Until there is a credible resolution to the crisis, businesses will be understandably anxious to keep cash balances as high as possible.  Consequently, company dividend payments have fallen sharply and are likely to remain below last year’s levels.  This will in turn impact distributions from the fund.

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 31st August 2020
 
1 year
 
3 years
 
5 years
 
10 years
Since launch
 24/03/1994
Cumulative return
-2.3
4.7
28.1
83.1
512.0
Cumulative Retail Price Index (RPI)
1.6
7.8
13.8
31.6
107.0
Annualised return
-2.3
1.5
5.1
6.2
7.1
Annualised Retail Price Index (RPI)
1.6
2.5
2.6
2.8
2.8
Discrete annual returns
Total return (%)
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
12 months to 31st August
  • -2.3
  • 6.6
  • 0.5
  • 4.0
  • 17.6
  • 0.1
  • 5.9
  • 13.7
  • 12.3
  • 5.7
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 18/09/2020)
£216m
Independent auditor
PricewaterhouseCoopers LLP 
Fund status
Authorised unit trust 
Reference currency
GBP 
IA sector
Mixed Investment 40-85% shares GBP 
Valuation and dealing
12 noon 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 / £9,000 
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
 12.500p
 01.06.20
 31.07.20
 Final
 28.169p
 02.03.20
 30.04.20
 Interim
 17.000p
 02.12.19
 31.01.20
 Interim
 17.000p
 02.09.19
 31.10.19
Unit class
Personal class 1
Launch date
 01/01/2013
Unit price
(at 18/09/2020)
 
£26.374xd
Historic dividend yield 2
 
2.7%
SEDOL
 B8KQRW4
ISIN
 GB00B8KQRW41
1 A Legacy Class Unit (SEDOL 0554325 & ISIN GB0005543250) 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.

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.
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

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