- This fund is focused on investing for income, while trying to provide some shelter during wider market falls.
- John Stopford has built a strong track record with this fund since he took over as lead manager in 2012.
- We think this is a great cautious fund that could be held as part of a diversified portfolio
Hal Cook, senior investment analyst, Hargreaves Lansdown:
“We are pleased to share that we have added a second multi-asset income fund to the Wealth Shortlist, providing our clients with a defensive income option – a step up in risk from cash for those clients looking for capital preservation and total returns. We think this would be a great option for investors looking to supplement their retirement income, or for more cautious investors looking for an alternative to cash as rates fall. The fund mainly invests in bonds, but also invests in shares and investment trusts. It aims to provide an income with potential for capital growth, while limiting the ups and downs to less than half of the UK stock market. Most of the fund’s returns are expected to come from the income paid by the fund. The fund is managed by John Stopford and Jason Borbora-Sheen. Stopford is Head of Multi-Asset Income at Ninety One and has over 30 years’ industry experience. Borbora-Sheen is a portfolio manager at Ninety One and has 13 years industry experience.
We think the fund could provide diversification to an investment portfolio focused on growth or be a useful addition to a portfolio focused on providing an income.
We like the cautious nature of the approach and the focus on investing for income. The funds’ exposure to bonds naturally fits with these characteristics. The inclusion of shares helps to diversify where some of the income comes from and has the potential to reduce the funds’ sensitivity to interest rate changes. Our conviction in the fund today is based on Stopford’s vast experience in bond investing and his continued involvement in running the fund. That said, we view Borbora-Sheen in high regard and note he has been working on the fund since 2015. His continued involvement in running the fund will help to reduce the key person risk associated with Stopford over time.”
