Both portfolios have benefited from their 'total return' investment approach ever since their inception in January 2009 - in part, recognising that a focus on yield would help reap rewards in a low interest environment and the positive impact of reinvested dividends on portfolio returns over the longer term. As such, the Growth portfolio presently yields 3.3 per cent while the Income portfolio yields 4.7 per cent
Despite the prospect of modestly higher interest rates, such an approach will continue to do well - perhaps even more so. Such is this conviction that the majority of the seven real investment trust portfolios on the website www.johnbaronportfolios.co.uk have an income growth bias - with the equity-focused Dividend portfolio presently yielding 5.1 per cent, and the much more diversified Winter portfolio yielding 6.0 per cent.
Economic backdrop