Exclusive: The two best funds for a private investor to put into their SIPP in 2016 The two best funds for a private investor to put into their SIPP in 2016

Sipp investors looking for income may be able to find this in investment trusts that have a long history of delivering consistent dividends. Matthew Read, senior analyst, QuotedData revealed his attractive income picks. 

 The two best funds for a private investor to put into their SIPP in 2016

Care home investments can be placed in a pension

 

Sipp investors looking for income may be able to find this in investment trusts that have a long history of delivering consistent dividends. Matthew Read, senior analyst, QuotedData revealed his attractive income picks.

Sipp investors looking for income may be able to find this in investment trusts that have a long history of delivering consistent dividends. Matthew Read, senior analyst, QuotedData revealed his attractive income picks. 

He began his comments with the remark that, ‘“Obviously the choice of fund will depend on an individual’s personal circumstances, most importantly perhaps, their age.’

Read more: The three best off the beaten track funds for your SIPP, by prominent analyst

The analyst continued, ‘Seneca Income & Growth is a fund that offers the prospect of both capital growth and income, from a global portfolio, with low volatility returns and, for investors seeking this type of exposure, {the trust} could make a potential candidate for inclusion within a Sipp. The Trust has a multi-asset portfolio and its managers use yield as a principal determinant of value, when making asset allocation decisions. It aims to outperform 3 month LIBOR by 3 per cent over the longer term and its yield, as of 5th October, was 3.86 per cent. In addition to a strong focus on capital preservation and providing returns less correlated with traditional equity markets, there is a strong focus on delivering consistent income to investors.’

Read more: The three best UK smaller companies for investors to place in their SIPP in 2016

The second trust he mentioned is Henderson International Income Trust (HINT) maintains a diversified portfolio of income producing equities from outside of the UK. It is the only trust, in the global equity income sector, which specifically excludes the UK from its remit. However, this could serve it well if current concerns regarding the prospect of dividend cuts from the large FTSE 100 dividend payers come to fruition. This was a key strand in the logic behind its creation in 2011. At that time, many UK equity income funds were struggling to maintain their dividends, as a number of large dividend payers in the UK index had cut or passed their dividends in the wake of the global financial crisis and, in BP’s case, the Deepwater Horizon drilling rig explosion. HINT’s manager places an emphasis on ensuring that HINT has a secure flow of income. The trust pays quarterly dividends and is on track to achieving 15 per cent cumulative dividend growth over the past four years. Its yield, as of 5th October, was 3.15 per cent.’

 

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