Rathbone Income fund
Andy Parsons, advice team manager at The Share Centre, explains what the Rathbone Income fund can offer investors.
"The UK equity income sector is one of the most popular and includes some of the best and most well respected managers. The sector is often surrounded by speculation as to the real flexibility the managers have and the diversity they truly offer investors.
"When reviewing the top 10 holdings, many of the largest UK equity income funds have strong correlations to each other, with favourite income-generating sectors in pharmaceuticals, telecoms, tobacco and utilities regularly featuring.
"This fund has been managed by Carl Stick since January 2000. It offers investors the opportunity to benefit from an income fund that searches for the very best companies from across the entire market capitalisation spectrum, with an above average yield.
"For investors looking for real diversification and who want to create a blend within their overall UK equity income fund selection, this fund may well suit. It currently has approximately 40% of its assets held in companies from the FTSE 250, FTSE Small Cap and AIM markets.
"However, given the current political and geographical uncertainty, the fund has a significant weighting to some of the very largest FTSE 100 defensive income stalwarts.
"In terms of performance, the fund has a current yield of 4.18% and has returned 20.63% on a cumulative basis over one year compared to the sector average of 20.45% and 22.17% on a three year basis compared to the sector average of 26.76%."