07 Aug 2025
James Goldstone, UK Equities Fund Manager | Ciaran Mallon, UK Equities Fund Manager | Georgina Millar, Product Director
Key takeaways
Income investing offers resilience and real returns
Investing for income, particularly through equity dividends, provides exposure to companies that are profitable, cash-generative, and well-managed. These dividends can help preserve or grow purchasing power, especially in inflationary environments, and offer long-term compounding benefits.
Balanced portfolio strategy: Income today vs. income tomorrow
The UK Equity High Income portfolio is structured with a mix of companies that provide strong dividends now and those with the potential to grow both dividends and capital in the future. This balance supports both current yield and long-term capital and income
By diversifying across income today and income tomorrow as well as across and within sectors, the portfolio reduces reliance on any single company, industry or source of income. This approach has proven resilient across various market environments, including the recent extreme volatility, helping to maintan stable, positive performance.
Please click on the ‘chapters’ button, in the bottom right of the video, to jump to the following sections.
00:00 – Introduction
00:41 – Importance of income
02:36 – How do you go about capturing income?
03:44 – How do you aim for a balance between income today and income tomorrow?
04:22 – When does this strategy work best?
Footnotes
Standardised rolling 12-month performance (% growth)
Past performance is not a guide to future returns
Performance figures are based on the Z Accumulation share class. Performance figures for all share classes can be found in the relevant Key Investor Information Document. Fund performance figures are shown in sterling, inclusive of reinvested income and net of the ongoing charge and portfolio transaction costs to 31 May 2025 unless otherwise stated. Sector average performance is calculated on an equivalent basis. Source: Fund - Invesco, Comparator Benchmark - Lipper, Target Benchmark - Bloomberg.
Target Benchmark: The Fund’s income target can be measured against the income return of the FTSE All Share Index (Net Total Return).
Comparator Benchmark: Investment Association UK All Companies Sector. Given its geographic focus the Fund’s performance can be compared against the Benchmark. However, the Fund is actively managed and is not constrained by any benchmark, including the Target Benchmark or the Comparator Benchmark.
Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
The Fund may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved.
The use of such complex instruments may result in greater fluctuations of the value of the Fund. The Manager, however, will ensure that the use of derivatives within the Fund does not materially alter the overall risk profile of the Fund.
As one of the key objectives of the Fund is to provide income, the ongoing charge is taken from capital rather than income. This can erode capital and reduce the potential for capital growth. The Fund is invested in companies primarily domiciled in one country, any unfavourable conditions presented on them through country-specific conditions such as changes in regulation, business or economic policy may have a more negative impact on the Fund's performance than on the performance of a Fund that is geographically diversified.
The Fund may invest in private and unlisted equities which may involve additional risks such as lack of liquidity and concentrated ownership. These investments may result in greater fluctuations of the value of the Fund. The Manager, however, will ensure that any investments in private and unlisted equities do not materially alter the overall risk profile of the Fund.
Important information
Data as at 20.06.25, unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy.
For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the financial reports and the Prospectus, which are available on our website.
Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. Views and opinions are based on current market conditions and are subject to change.
EMEA: 4606342