5 High Yielding Funds

THE INCOME INVESTOR: Looking for new investment ideas? These open-end funds all pay at least 5% a year and could fit into a well diversified portfolio

Emma Wall 18 December, 2014 | 1:35PM

Inflation falling to just 1% is great news for income investors – meaning that it is easier to get a real rate of return on your savings. Using Morningstar Direct we screened funds that had been awarded a Gold, Silver or Bronze Morningstar Analyst Rating and identified those with a yield of 5% or more. We selected five funds for your perusal below.

Threadneedle High Yield Bond

This Bronze rated fund is an attractive choice for investors looking for a high-yield bond fund. Since launch to the end of Aug 2014, the fund has outpaced its peers by a wide margin although it is behind the benchmark. The fund has participated well in the very strong markets of 2012 and 2013, although it is behind its benchmark in part due to the managers’ cautious stance on peripheral debt. 

Henderson Preference & Bond

Preference and Bond is a sound choice for investors seeking a flexible, actively managed strategic bond fund that also provides a reasonable income, according to analysts, who awarded the fund a Silver Rating. As a mature fund, launched in 1978, income payments have been a significant part of the fund's overall return, and income remains an important focus of the fund managers as they aim to meet investors' expectations.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Artemis High Income R Inc0.70 GBP-0.11
BNY Mellon Asian Income GBP Inc1.90 GBP-0.99
Janus Henderson Preference & Bond A Inc54.45 GBP0.04
Schroder Strategic Credit C Acc1.77 GBP0.00
Threadneedle HY Bd Rtl Inc GBP0.41 GBP-0.05

About Author

Emma Wall  is former Senior International Editor for Morningstar

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