Fidelity eyes income for yield and capital return
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Eugene Philalithis, manager of the fund since February 2010, has maintained faith in funds such as the BlackRock North American Equity tracker and the JOHambro Capital Management UK Equity Income funds to help maintain its yield and provide a good capital return for investors.
Within the portfolio, Mr Philalithis has 8.05 per cent in the BlackRock tracker, 3.32 per cent in the JOHCM UK Equity Income fund and 5.87 per cent in the higher octane JOHCM UK Opportunities Retail fund.
Overall the Fidelity portfolio invests in both equities and bonds to help achieve both long-term capital growth and a regular income stream.
The portfolio, which has a historic yield of 2.25 per cent on average, managed to outperform the majority of funds in the Investment Management Association’s Mixed Investment 20 per cent to 60 per cent Shares sector.
According to data from Morningstar, the fund has been first quartile in the year to date, ranked 32 out of 160 funds in the sector, and returned 2.4 per cent cumulative growth. In the past three years it returned 26.2 per cent and was ranked 52 out of 124 funds in the sector for the same period.