3 Gold Rated Income Funds

These three income funds are Gold Rated by Morningstar fund analysts - one invests in UK equities, one in global stocks and the other is a bond fund. Which one is for you?

Emma Wall 28 May, 2015 | 2:43PM
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Looking for income producing funds to add to your portfolio? These three are all Gold Rated by Morningstar fund analysts and source yield from three very different sources. So whether you are looking to up your exposure to domestic or global equities or fixed income, there is something for you to consider.

Artemis Income

This Gold Rated fund remains an outstanding choice in the UK equity-income sector, says Morningstar analyst Chetan Modi.

The fund features a distinguished pairing in Adrian Frost and Adrian Gosden, who share an impressive amount of industry experience and also draw upon the expertise of their fellow Artemis managers.

The managers are disciplined in applying a process that is proven over the long term. They seek cash-generative companies by applying cash flow and dividend screens to their equity universe with the help of Artemis' stock-screening model. They believe that focusing on free cash flow yield is the equivalent of valuing the company as if it were a bond. 

Fidelity MoneyBuilder Income

This is one of the very best sterling corporate bond funds for diversified and core exposure to this asset class, says fund analyst Michael Eyre. The Gold Rated fund has an excellent track record, which is testament to the strong setup at Fidelity, notably the team and fund manager.

In August 2013, the mandate was altered to allow Ian Spreadbury to hold a greater proportion in non-sterling-denominated bonds that will remain predominately hedged back to sterling. Spreadbury has been at the helm since inception, and his presence underpins our conviction. He has gained valuable perspective through his long tenure at Fidelity, his 10 prior years at L&G and his earlier actuarial career.

Veritas Global Equity Income

Veritas Global Equity Income ranks amongst the strongest offerings in its sector says analyst Samuel Meakin. 

A major strength of this Gold Rated fund is its management. Charles Richardson and Andrew Headley, who previously worked together at Newton, have been at the helm since the fund was launched in 2006 and have run the institutional version since late 2003. The fund's standout characteristic is the extent to which the managers aim to deliver real returns to investors.

They invest in companies with durable competitive advantages and strong, sustainable cash flows that can lead to dividend payments. Yield is one of the considerations, but the managers are not prepared to invest in high-yielding companies that are unlikely to contribute to capital growth. 

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Income R Inc2.45 GBP0.44Rating
Fidelity Sust MoneyBuilder Inc A-INC-GBP29.10 GBP-0.34Rating
Veritas Global Equity Income A GBP246.14 GBP0.49Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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