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Funds Balancing Growth & Income Gain Traction

  //stocks-investing.news-articles.net/content/202 .. funds-balancing-growth-income-gain-traction.html
  Published in Stocks and Investing on Friday, January 30th 2026 at 21:25 GMT by MoneyWeek
      Locales: UNITED KINGDOM, JAPAN, UNITED STATES

By Amelia Hayes, Financial Correspondent

(Image: A collage depicting global markets, dividend symbols, and a North/South American map)

Saturday, January 31st, 2026 - As we edge further into 2026, financial markets are displaying increasing optimism. With inflation showing signs of cooling and speculation mounting about potential interest rate cuts, investors are actively seeking opportunities to balance capital growth with a reliable income stream. The conventional wisdom that prioritizes one over the other is fading; a robust portfolio now demands both. A consistent income flow isn't just about generating cash - it acts as a vital buffer against the inevitable volatility inherent in market fluctuations.

Today, we examine three funds specifically designed to deliver this dual benefit, catering to investors who desire both long-term appreciation and a dependable yield. These aren't simply 'dividend plays,' but carefully constructed portfolios focused on sustainable growth and shareholder returns.

1. Fidelity Global Dividend Fund: A Cornerstone for Global Income

• Fund type: Global Equity
• Yield: 3.2% (as of 03/01/2026)
• Ongoing charges: 0.42%

The Fidelity Global Dividend Fund stands out as a broad-based, globally diversified option for income-seeking investors. Its strategy revolves around identifying companies with a proven history of consistent dividend payments, underpinned by strong financial health. This isn't about chasing high-yielding, potentially unstable stocks. The Fidelity fund focuses on established, quality businesses capable of weathering economic storms and maintaining dividend payouts even during downturns. The fund's managers don't just look at current yield; they prioritize dividend sustainability and potential for future growth. The low ongoing charges of 0.42% make it a particularly attractive choice for cost-conscious investors.

The fund's global mandate allows it to tap into diverse economies and sectors, reducing concentration risk. Recent analysis suggests the fund is heavily weighted towards US and UK equities, with emerging market exposure steadily increasing. This diversification is key to long-term resilience.

2. Liontrust Global Leaders Fund: Riding the Wave of Dominant Businesses

• Fund type: Global Equity
• Yield: 2.9% (as of 03/01/2026)
• Ongoing charges: 0.63%

Liontrust's Global Leaders Fund takes a different approach, concentrating on companies that command leading positions within their respective industries. These are typically well-recognised brands with significant market share and a durable competitive advantage - often referred to as 'moat' companies. The premise is that market leaders are better positioned to generate consistent cash flow and return capital to shareholders through dividends and share buybacks.

The fund's managers emphasize quality and sustainability, seeking businesses that can maintain their dominance over the long term. While the yield of 2.9% is slightly lower than the Fidelity fund, the focus on market leadership arguably offers a higher degree of capital protection. However, the 0.63% ongoing charges are slightly higher, reflecting the active management style and research intensive approach.

3. BlackRock North & South American Investment Trust: Capturing Regional Growth Potential

• Fund type: Investment Trust (North & South America)
• Yield: 5.3% (as of 03/01/2026)
• Ongoing charges: 0.76%

For investors willing to take on a slightly higher level of risk for potentially greater rewards, the BlackRock North & South American Investment Trust presents an intriguing opportunity. This fund differs from the previous two by specializing in companies listed in the Americas. The region is currently benefiting from rising commodity prices, particularly in South America, and generally strong economic growth across North America.

The trust's managers actively manage the portfolio, seeking out undervalued companies and capitalizing on regional growth opportunities. The 5.3% yield is considerably higher than the other two funds, making it particularly appealing to income-focused investors. However, the 0.76% ongoing charges reflect the specialist nature of the fund and the costs associated with active management. Investors should be aware that regional funds carry inherent concentration risk; performance is heavily tied to the economic fortunes of the Americas.

A Word of Caution

While these funds offer attractive prospects for growth and income, it's crucial to remember that all investments carry risk. Market conditions can change rapidly, and past performance is never a guarantee of future returns. Before investing, consider your own risk tolerance, investment horizon, and overall financial goals. Diversification remains a key principle of sound investing, and these funds should be considered as part of a broader, well-balanced portfolio. It is always recommended to seek independent financial advice before making any investment decisions.