Investec Diversified Income Fund

Aims to tackle tough markets with yield-driven, defensive returns
Investec campaign webpage

The Investec Diversified Income Fund seeks defensive returns in today’s increasingly volatile markets. By focusing on attractive income generating securities, backed by resilient cashflows, the Fund aims to generate upside but limit drawdowns. The managers’ bottom-up, active approach has delivered on the Fund’s defensive outcomes since inception in September 2012.1

  • Aims for defensive returns, driven by yield (targets 4-6% p.a., distributed monthly)
  • Targets less than half the volatility of UK equities
  • Current yield 4.0% (3.3%)2, generating annualised growth of 4.4% since inception

Watch now – Q4 2018 manager update

At every stage of the process we’re thinking about how to achieve upside, but also how we protect the downside."

John Stopford, Portfolio Manager, Investec Diversified Income Fund

Protecting the downside during volatility

Launched in September 20121, with a focus on capturing returns while minimising drawdowns, the Fund has a track record of protecting the downside and minimising losses during episodes of market volatility:

 

Source: Morningstar, 31 December 2018. Performance for I Acc share class, net of fees (NAV based, including ongoing charges), gross income reinvested (net of UK basic rate tax pre-5 April 2016), in GBP. Calendar year % returns for the Fund, IA Targeted Absolute Return Sector Average and FTSE All Share respectively 2018: 0.41 -2.91, -9.47 2017: 4.82, 3.75, 13.10. 2016: 5.92, 2.09 16.75 31. 2015: 1.97, 2.35, 0.98. 2014: 5.32, 3.41, 1.18.

 

Investec Diversified Income Fund

A tried and tested defensive return fund for your clients’ portfolios, that could be suitable as an alternative to absolute return or strategic bond allocations.

Performance targets are subject to change. Past performance is not a reliable indicator of future results, losses may be made. The amount of income may rise or fall. The portfolio may invest more than 35% of its assets in government securities issued or guaranteed by a permitted single state. Charges are taken from capital and may constrain future growth. Calendar year performance %: 2018: 0.4 2017: 4.8 2016: 5.9 2015: 2.0 2014: 5.3.


Issued by Investec Asset Management

THIS COMMUNICATION IS DIRECTED ONLY AT PROFESSIONAL FINANCIAL ADVISORS. IT SHOULD NOT BE DISTRIBUTED TO, OR RELIED ON BY RETAIL CUSTOMERS. 2Source: Morningstar, dates to 31.12.18, performance is for the I-Acc share class, net of fees (NAV based, including ongoing charges) gross income reinvested (net of basic rate UK basic rate tax pre-5 April 2016), in GBP. 1Fund inception date: 03.09.12. 3Source: Morningstar, Bloomberg, Investec Asset Management, in GBP, 31 December 2018. Annualised standard deviation of monthly returns over 3 years. UK Equities: FTSE All-Share TR; Diversified Income Fund: Distribution Yield and volatility of I Inc-2 share class. Yield shown for the I Inc-2 share class. The yield reflects the amount that may be distributed over the next 12 months as a percentage of the Fund’s net asset value per share, as at the date shown, based on a snapshot of the portfolio on that day. Where there is a yield number in brackets, it is calculated in the same way, however, as the charges of the share class are deducted from capital rather than income, it shows the level of yield had these charges been deducted from income. This has the effect of increasing the income payable whilst reducing capital to an equivalent extent. Yields do not include any preliminary charge and investors may be subject to tax on their distributions. English language copies of the Fund’s Prospectus and Key Investor Information Documents are available from Investec Asset Management on request. Issued by Investec Asset Management which is authorised and regulated by the Financial Conduct Authority, January 2019.