BlackRock fund can thrive against all backdrops

Portfolio’s high-quality picks drive above-average income level and long-term capital growth
Thursday 10 Aug 2017 Author: James Crux

Income-starved investors fretting over meagre interest rates, savings-eroding inflation and Brexit’s impact on the domestic economy need not limit themselves to UK listed equities.

A savvy way to gain exposure to some of the best overseas-based dividend yielders is to invest in BlackRock Global Income Fund (GB00B3R9X560) which yields 2.6%, according to Morningstar.

The £159m unit trust aims to grow its income well ahead of inflation without sacrificing long term capital growth. The portfolio of roughly 50 companies is skewed towards large caps and dividend-rich sectors such as consumer staples, health care and industrials.

Managers Stuart Reeve, James Bristow and Andrew Wheatley-Hubbard only own high quality stocks able to thrive in any economic weather whilst offering attractive capital returns – ‘strength, resilience and cash returns, they’ve got to have all three’ – which they plan to own long term.

‘We’re giving people exposure to a concentrated portfolio of high quality stocks,’ Wheatley-Hubbard tells Shares.

Holdings including cigarette giant Philip Morris International, Finland-based elevators concern Kone, parcels handler Deutsche Post and US auto parts distributor Genuine Parts Co.

‘One of the explicit objectives of the fund is to provide lower volatility than the market,’ stresses Wheatley-Hubbard, a salient point to note with markets close to or testing new highs.

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The Shares team

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