EdenTree Higher Income Fund Class B - Income (GBP)

Robin Hepworth has done an excellent job for investors since the fund launched. It's performed much better than the average fund in the sector and grown more than the UK stock market. Sometimes his approach will go out of favour and performance won't be as good. This is true of any fund manager and past performance isn't a guide to the future.

Hepworth has also successfully changed the amount invested in different shares and bonds to generate an attractive income. We think he can do this over the long run.

We normally expect his approach to offer some shelter when markets fall, but not perform quite as well when they rise strongly. Not losing as much in the tougher times means there's less to make up in the good times. This can lead to excellent long-term performance, but there are no guarantees.

Robin Hepworth invests in out-of-favour companies. This could be because something has gone wrong, or the company is in an unfashionable area. Whatever the reason, the setback must be temporary. The manager won't invest unless he sees the potential for business improvement and share price recovery. This often takes time, so he invests for the long-term.

He invests more in shares when the outlook for companies to grow profits and dividends is good. When it's less certain he'll invest more in bonds. Bonds can offer an attractive income and their prices haven't tended to rise and fall as much as share prices. They can reduce volatility, but also hamper gains.

Robin Hepworth invests in shares, bonds and cash. He'll change the amount invested in each area over time, depending on where he sees the most opportunity. In recent years the amount invested in shares has increased to around 75%. They've continued to offer an attractive and growing income, while income from bonds and cash has dwindled. He usually focuses on UK companies, but also invests in America, Europe, and higher-risk Asian and emerging markets.

Some corporate and higher-risk high-yield bonds are held as it's still possible to find some income here. They also help diversify the fund. We think the manager will increase bond investments again if yields become attractive, or the outlook for shares worsens. This is partly why we like the fund.

Please note the fund's charges can be taken from capital. This increases the yield, but reduces the potential for capital growth.