HL Multi-Manager Inc & Growth Portfolio Accumulation Units

I have been a fan of equity income funds for 25 years; as long as I have held funds, in fact. I believe they are an essential element of almost any portfolio.

If you are looking for income, yields of 4% (net of basic rate tax) currently look attractive. If you are investing for growth, the income can be reinvested to make a great core growth holding. In fact, with dividends reinvested, the average UK equity income fund has delivered more than twice the growth of the average UK growth fund over the past ten years.

The requirement to provide a regular, sustainable dividend means equity income managers often gravitate towards companies with more predictable profits, lower debt and dominant market positions. At the moment these are companies that provide essential services such as electricity generation or healthcare; what the market calls 'defensives'. The share prices of this type of company were somewhat left behind in the rally of 2009, but we think it's only a matter of time before the market reappraises their worth. Therefore they now offer not only an attractive yield, but also the potential for capital growth, though of course they can fall as well as rise.

For many investment management groups, their UK equity income fund is their flagship fund. Competition in the sector is fierce – and it is home to some of the most talented managers in the UK. Established heavyweights like Neil Woodford of Invesco Perpetual, Adrian Frost of Artemis and Tony Nutt of Jupiter manage funds alongside those whom we believe could become the stars of tomorrow - Clive Beagles of JO Hambro, for example.

Choose any one of their funds and we will almost certainly offer you a better deal than anyone else. However, you can also choose not to choose. The HL Multi-Manager Income & Growth Portfolio Trust is essentially a 'one stop shop', providing access to all our favourite equity income managers within a single fund. The portfolio blends together managers with different, yet complementary styles and investment approaches. The portfolio is constantly monitored and changes are made to weights and positions if the managers believe it will maximise returns.

The results are extremely impressive. Since launch the fund has been in the top 25% of all the funds in the equity income sector - the only multimanager fund to achieve this over the period. Please remember though that past performance is not a guide to future returns.

With so many great managers under one roof and the assurance of a dedicated team to continually monitor your investment we think the HL Multi-Manager Income & Growth Portfolio Trust could make an excellent long-term core holding for almost any portfolio.