Snowdonia Income Fund

This fund is designed to provide income together with some long-term capital growth from a portfolio of investments. It is also suitable for those investors looking for capital growth in a relatively defensive manner. It is to be managed in such a way that no more than 60% of the fund will be exposed to UK equities at any point. The balance will be invested into fixed interest securities, money market instruments and warrants.


The fund may also invest up to 10% in commercial property. Income from the fund is paid (or reinvested) quarterly. The charges are taken from capital to allow for income to be distributed. This fund would be defined as medium to low risk and rests in the Cautious Managed Sector as defined by the Investment Management Association.


The fund is exposed to equities, the value of which can go down as well as up. We believe it is important to hold equities within an income portfolio as this has in the past provided a protection against inflation. Fixed interest securities and commercial property also carry a capital risk, although lower than that of equities.


Income is variable as it is determined by the underlying investments. The fund is managed by Iain Scotland of Principal Investment Management.


Iain has 14 years' direct equity fund management experience. Most recently he was Head of UK Smaller Companies at Insight Investment (formerly Clerical Medical), where he was responsible for some £600m in assets under management. In this role he led the development of a distinctive and successful research-driven investment process, recognised by external fund ratings services such as S&P. Prior to that, Iain worked for five years as a smaller companies fund manager under some of the most well known names in the industry, at Gartmore Investment Management. Iain is based in our Sevenoaks office. Iain is also a CFA Charterholder- the highest standard of qualification in the global investment industry. Iain will be supported by Principal’s growing band of analysts and portfolio managers.