Heritage Income Portfolios

Heritage offer three income portfolios, ranging from low to high risk. The higher the income, the more risk is placed on the mix of funds to produce it and the more volatile the underlying investment funds. For the higher risk portfolio, there is the increased likelihood to capital erosion, especially if you were to withdraw your money in the earlier years.

Note: There is an increase in risk from portfolio 1 (lowest risk) to portfolio 3 (highest risk)

Below is a table that may assist you in identifying the most appropriate portfolio that meets your income needs:

 

Income
Portfolio

 

Risk Profile

Description

Recommended Investment Period

 

 

1

 

Low to Medium

You tend to prefer investments that expose your money to less risk of a decline in value.  However, you recognise that in order to achieve a higher income than you could achieve from a savings account, you accept that you must take some additional risk by investing mainly in UK fixed Interest funds (mainly corporate bonds) a small proportion in high yielding UK equities. You acknowledge that your investment is likely to encounter relatively small fluctuations in value during the investment period. The portfolio aims to provide an income of approx. 4-5% pa. and some capital growth over the medium to long term.

(HFS Income 1 performance).

At least 5 years

 

2

 

Medium

You are willing to place some reasonable emphasis on obtaining a much higher income than you would expect from a savings account and as such, you must be prepared to accept that any investment is more likely to fluctuate in value during the investment period. These portfolios will include a balance between fixed interest (including higher yielding bonds) and a small element of high yielding UK equities. The portfolio aims to provide an income of approx. 5-6% pa. and some capital growth over the medium to long term.

(HFS Income 2 performance).

At least 7

3

 

Medium to High

You are willing to place a lot more emphasis on obtaining a much higher income than you would expect from a savings account and as such, you must be prepared to accept that any investment is more likely to fluctuate in value during the investment period, with much sharper gains and losses. These portfolios will concentrate more on higher yielding fixed interest funds, with an element of property to provide rental income and an a proportion of high yielding UK equities. The portfolio aims to provide an income of approx. 6-7% pa. and some capital growth over the medium to long term.

(HFS Income 3 performance).

At least 10 years