Investing for a Monthly Income

We all know that the interest rates being offered to savers by the building societies at the current time, are pretty paltry.

For your clients that save into these accounts and who take a regular drawdown from them to supplement their income, this is a particularly difficult time.

However, have you ever had the time to take a look at what your clients savings could be providing had they invested their cash into a UK Equity Income unit trust instead? 

Take a closer look at this graph

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The graph (Source: Lipper Hindsight) shows what would have happened to £1,000 invested into a Halifax 30 day fixed account in 1970, compared to £1,000 invested into the M&G Dividend Fund over the same period (one of the few income funds that have been around over the period in question).

It shows that in 2008, the Halifax account would have generated £26.92 in interest at 2.6%. By contrast, the M&G Fund would have produced £991.90 in the same year. In other words the yield would have been 99.1% compared to 2.6%.

What is the Monthly Income Portfolio?

Over the last year we have been asked by a number of IFAs to create managed portfolios for their clients with the specific aim of investing for a monthly income.

We have now decided to offer the Monthly Income Portfolio which will invest in funds producing a reasonable income from UK Equities.

Portfolio Construction

As Avalon is not permitted to offer fund management, we have asked Minerva Fund Managers to put a portfolio of income generating funds together and provide ongoing discretionary fund management. Minerva's role is to monitor performance of funds within the portfolio on an ongoing basis and maximise the income produced.

The Monthly Income Portfolio will intially comprise of funds from Jupiter, Gartmore, Artemis, Neptune, Schroders and Walker Crips.       

The Monthly Income Portfolio is available using the Avalon MIP Stocks and Shares ISA and the Avalon MIP Portfolio product. All of the MIP literature can be found in the 'downloads' section of the website.

Would you like some help? - Marketing Assistance

We have designed an A5 brochure specifically to promote the MIP to your clients (see downloads). We will put the mailshot together, despatch it and field enquiries arising if required. Whilst the IFA has to pay for the cost of the initial mailshot, we have used the Avalon Freepost address to take responses which will then be sent on to you to follow up.

If you would like to discuss what assistance we can provide for client mailshots please call us on 01666 501710 and ask for Lucy Frost.

The Portfolio and ongoing management

If you have an enquiry regarding the ongoing management or construction of the Fund Portfolio please email Paul Warner of Minerva Fund Management at paul@minfm.com.

More Information

Further background information about the Monthly Income Portfolio can be found in the IFA News Sheet in the download section of this website. Full details of the products are detailed in the Terms and Conditions available on request or from this website.

For more information or queries on the Avalon Monthly Income Portfolio, please go to  the 'Contact Us' section of the website or phone us on 01666 501710.