Craig’s portfolio is currently yielding 4.2 per cent, according to data from FE Analytics, while the highest-yielding trust he holds pays out 9.1 per cent.
Middlefield Canadian Income: 4.7 per cent
This four crown-rated trust has made 85.95 per cent over five years and 61.89 per cent over three, beating every single open-ended North American fund over both periods.
Performance of trust vs sector over 5yrs
Source: FE Analytics
The fund is currently yielding a healthy 4.7 per cent, according to data from the AIC, more than the other two North American trusts and the 4.1 per cent average of the IT UK Growth & Income sector.
The fund has benefitted from the strong performance of the Canadian economy, which was one of the countries least affected by the financial crisis, and of the Canadian dollar.
It has a high weighting towards the energy sector in Canada, although Craig says it has been shifting from oil to gas.
"We bought it because we have a high regard for the managers," he explained.
"There is a huge amount of capital discipline in the companies it buys, as they used to distribute all their income."
The total expense ratio (TER) on the fund is 1 per cent.
F&C Investors Capital: 5.1 per cent
"This is essentially a geared UK equity fund, although it also buys a few bonds. It is the largest holding in my portfolio and is quite conservatively managed."
This £128.3m trust, run by Rodger McNair, has 74.3 per cent in the FTSE 100 and 10.4 per cent in the FTSE 250, according to data from FE Analytics.
Along with the 15.3 per cent held in cash and fixed interest, the purpose of the mid cap holdings is to push up the yield on the fund, which currently stands at 5.1 per cent.
To produce such a high yield, the trust has sacrificed capital growth and has underperformed the FTSE All Share over one, three and five years. However, it has made 14.54 per cent over the longer period.
The TER on the portfolio is 1.18 per cent, according to data from FE Analytics, and it is currently on a discount of 9 per cent.
Ecofin Water & Power Opportunities: 5.6 per cent
This £405m fund invests in infrastructure and utilities on a global basis, with 86.6 per cent in equities and the remainder in bonds.
The fund has a low weighting towards alternative energy, which has started to fall out of favour in many western countries, and a large amount in private equity.
The biggest single holding is Lonestar Resources, a private oil and gas company that largely invests in Texas; the fund has 13.7 per cent in the company.
Performance of fund vs sector over 5yrs
Source: FE Analytics
This is another portfolio that will not appeal to those seeking capital growth, as it has lost money over both three and five years.
The fund has a 1.5 per cent management fee and a performance fee worth 15 per cent of any gains over 10 per cent in NAV growth.
Polar Capital Financials Income (OEIC): 5.6 per cent
"Although it is an open-ended fund I also hold Polar Capital Financials Income, run by Nick Brind, who invests in high yield bonds," Craig continued.
According to data from FE Analytics, this fund is a top-quartile performer in the IMA Specialist sector over one and three years, making 25.63 per cent and 26.59 per cent respectively.
The Specialist sector is highly diverse, making comparisons between funds of questionable value, but this one has also beaten the average IMA UK Equity Income fund over the past 12 months, while the three-year figures are just behind the equity income sector’s 27.88 per cent.
The capital appreciation is particularly noteworthy given that the fund is yielding 5.6 per cent.
The fund is split between 41 fixed interest positions and 38 equities ones, with the former making up 51 per cent of the portfolio.
The fund requires a minimum initial investment of £1,000 and has a TER of 1.35 per cent.
Greenwich Loan Income: 9.1 per cent
"This is one of the most significant contributors to the yield on the fund," Craig said. "It buys collateralised loan obligations, which lends itself to more institutional investors, perhaps."
"We have held it since it launched in 2005. I used to work with the manager many years ago."
According to data from the AIC, the fund is currently yielding 9.1 per cent, but it brings along with it the risk of investing in low-rated debt. The majority of issuers the company buys debt from are rated B or CCC.
Data from FE Analytics shows that in terms of capital growth, the trust has been recovering steadily since it was hit by the financial crisis of 2008.
It ended the year 86 per cent down, but has since recovered most of its losses and has lost 11 per cent over five years.
Over three years it has grown by 184.54 per cent, making it the third best-performing trust over that time, according to FE Trustnet figures.
The high yield has led to the trust reaching a premium of 10.5 per cent. The fund charges a performance fee.