Fund to watch: Rathbone Income fund

Carl Stick, the experienced manager of the Rathbone Income Fund, invests in some of the largest, most prominent names listed on the UK stockmarket.

In fact, his list of top 10 holdings reads like a "Who's Who" of industry in the UK, with a wide variety of household names from sectors as diverse as mining and tobacco - although, tellingly, Stick has nothing invested in the telecommunications sector at present and only a small amount in the technology and utilities sectors.

GlaxoSmithKline, the pharmaceutical giant, has the largest weighting of 4.78%, followed by Rio Tinto on 4.51% and AstraZeneca with 4.36%.

Other prominent companies in Rathbone Income Fund's portfolio include BAE Systems, British American Tobacco, Royal Dutch Shell, SSE, Reckitt Benckiser, HSBC Holdings, and Lockheed Martin Corporation.

The aim of the fund is to achieve above-average income that can be maintained, but without neglecting capital security and growth. While there is no restriction on the economic sectors or geographic areas that can be covered, investments will always be predominantly in the ordinary shares of UK companies.

Stick maintains a reasonably concentrated portfolio, with higher than average exposure to higher-risk medium-sized and smaller companies.

He also has a focus on companies with a sustainable competitive advantage and he aims to avoid permanent loss of capital.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.