Rathbones' McIntosh-Whyte: Chasing high-income targets is 'a danger'

Cautious stance amid "stressed" environment

The manager of the Rathbone Strategic Income Portfolio has warned of the danger in chasing a high income target in the current "stressed" environment and said that the fund's lower income target of 3% allowed it to position itself in better-performing "growthier names".

Will McIntosh-Whyte, who manages the fund with head of multi-asset investments David Coombs, said this meant the fund did not have to sit in "broken businesses" just because they offered a yield. Addressing the raft of dividend cuts and cancellations in 2020, McIntosh-Whyte said: "We have tried not to make wholesale changes and say, 'that dividend has gone, we need to sell that business' and move into another business that has maintained its dividend." Home and dry: UK equities safe from dividend cuts as Lockdown 3.0 continues The portfolio kept hold of its position in pest control...