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Non-US/UK income funds with 3-4% yield?
berlingirl
Posted: 12 January 2018 12:14:09(UTC)
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I'm a relatively new investor who has broken one of the golden rules - I haven't diversified and only have UK funds and a few stocks. The reason? I'm interested principally in income rather than growth and cannot find many non-US/UK funds with a reasonable yield of 3-4%. Jupiter Asian Income is a possible (3.6%) but does anybody have suggestions for other Emerging Markets, Latin America and Europe?
Mickey
Posted: 12 January 2018 12:48:48(UTC)
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The AIC Global Equity Income Sector, from that list you could explore country weightings for specific investment trusts.
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Mr Helpful on 12/01/2018(UTC)
Amateur hour
Posted: 12 January 2018 13:15:25(UTC)
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There are quite a few. Blend EAT and JETI for Europe perhaps, AAIF and HFEL are other Asian options to consider, and ALAI for Latin America and JEMI for wider EMs. BEE is interesting for emerging Europe. I also use some of the income oriented EM ETFs, and if you want lots of yield there’s always Schroder Asian Income Maximiser. If you think that the upward trajectory is about to flatten off then might be worth a look too.

Slightly off brief but commodity income gives you some EM exposure - I use BRCI and BRWM. Blended they would deliver target yield.
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Mr Helpful on 12/01/2018(UTC), Keith Cobby on 13/01/2018(UTC), Mike L on 13/01/2018(UTC)
Mr Helpful
Posted: 12 January 2018 19:10:09(UTC)
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Amateur Hour in previous post has highlighted Investment Trusts that satisfy the brief.
But puzzled as starting from UK investments only, US is not to be considered.
The US represents about 55% of Global Stocks, yet seemingly excluded?

For the US ; Investment Trust BRNA nearly sqeezes within the 3% limit.
Another tactic to include a degree of US exposure, is to use Global Income Investment Trusts such as IVPG, MYI, which meet the 3% criteria, and SCAM which currently just misses out.

Trust not introducing a red herring?
King Lodos
Posted: 12 January 2018 19:43:48(UTC)
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Aberdeen European Standard Logistics fit the bill for me .. A new fund (and already on a bit of a premium) investing in distribution warehouses for companies like Amazon and Ikea – hopefully achieving a 4-5% income.

I will restate my old point: capital accumulation is often a better way to achieve a high income than chasing income.


Example : Glaxo vs Unilever:

– Glaxo has a 5% dividend, and Unilever has a 2% dividend;

– But over 20 years, Unilever's share price goes up 5x, and Glaxo's goes nowhere;

– So now, that 2% Unilever's paying represents a 10% yield on your original investment, while Glaxo's is still 5, and that trend's likely to continue .. Eventually it will be paying 20% a year on your investment .. And this is really why you buy stocks – rather than just bonds .. You can get AAA Corporate bonds on 3.5% yields that are very unlikely to lose you money if you hold to maturity
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Mike L on 13/01/2018(UTC)
andy
Posted: 13 January 2018 09:29:55(UTC)
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I hold EAT - and yes it pays 6%.

However, it sits in the growth part of my pf and not income because that dividend is taken from capital - the underlying investments do not yield anything like 6%.
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Keith Cobby on 13/01/2018(UTC), Tim D on 14/01/2018(UTC)
Keith Cobby
Posted: 13 January 2018 11:24:53(UTC)
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I hold EAT and HFEL. My other income trusts are Henderson International Income which excludes UK shares (but hold US) and global income Scottish American.
andy
Posted: 13 January 2018 12:28:27(UTC)
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Another thought for the original poster ... you might want to have a look what the multiasset funds which have an income bias are holding.

Suggest looking at some of these:

Hawksmoor distribution fund:

http://www.hawksmoorfm.c.../clients/managed-funds/

Seneca Income and Growth Trust:

http://senecaim.com/pers...stors/investment-trust/

They both hold UK and US but looking at the other holdings may provide ideas.
David JP
Posted: 14 January 2018 11:30:30(UTC)
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As well as the suggestions in previous posts, I would encourage the original poster to check at least via the factsheet the top 10 holdings and overall geographical allocation of any fund/trust before investing.

A number of 'global' funds and trusts include investments in UK-listed companies like Glaxo, Shell, Diageo which may duplicate holdings in investments you already have. This is explained in some depth in an article from Kepler Trust intelligence.

In addition the proportion of holdings invested in the USA can vary significantly between investments.

Of course like for anyone the appropriate investments depend on one's time horizon and risk tolerance. If the latter are long and high respectively, then to ensure geographical diversification I would suggest alongside a generalist global fund considering some exposure to emerging markets, possibly frontier markets. In investment trusts, Jupiter Emerging and Frontier Income (JEFI) and Blackrock Frontiers (BRFI) both offer yield in excess of 3% at the moment, although JEFI has only been launched recently.

Another factor to consider besides initial yield is the track record of income growth, data on which can be found on Trustnet, and for investment trusts at The AIC web site.
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