Square Mile Investment Consulting & Research (Square Mile) today announces the introduction of Income History graphs to its factsheets, on the back of increasing investor demand for dividend-paying investments. The updates relate to those funds which have an Income outcome, and at least three years of distribution history.

The new Income History graphs show the amount of income, in pounds, which an investor would have received from a £1000 investment in any given fund. Investors will be able to use these graphs to see how a vehicle's absolute income has increased or decreased over time.

Example: Invesco Perpetual Monthly Income Plus Fund: Income History Graph 


Commenting on the update, Square Mile's Managing Director Richard Romer-Lee said:

"Many investors have a very real need for income, and the recent changes in pension legislation have increased the demand for this type of investment. With this in mind, Square Mile wanted to help investors better assess and compare income funds by showing them the absolute income they would have received on both a yearly basis, and cumulatively over time, from being invested in any given fund.

He added: Square Mile's Income History graphs show absolute income rather than yields, as we believe this is a more useful measure for most investors. Yields can vary substantially over time, and can be misleading to investors who require a certain level of income to meet specific costs. Conversely, a constant level of yield does not always equate to a constant level of income.

In providing these income graphs, Square Mile's hope is to give investors a clear and easy-to-understand method of assessing whether a fund would have met their income needs.

Romer-Lee continued: There is no guarantee that funds will continue to provide any level of income, and investors should bear in mind that a manager's ability to generate income will be influenced by market conditions. However, we believe that giving investors this information should enable them to make more informed decisions about which funds are right for them."