london and capital targets income seekers

Investors’ demand for yield has led London & Capital to launch income options within its managed portfolio range.

london and capital targets income seekers
1 minute

The aim of the two new vehicles is to pursue a balanced investment strategy and spread risk by investing in a number of asset classes.

These include both traditional funds offered by major investment companies and ETFs.

The focus of the portfolios will be to provide a sustainable income, distributed on a quarterly basis.

One of the new portfolios, the Higher Income Portfolio, will have a higher risk level and so should offer a greater yield.

Its current breakdown is 54% equities, 44% bonds and 2% cash and it had a yield of 7.6% as at 26 September.

Meanwhile, the Income Portfolio has a medium risk level, with 56% in bonds, 30% in equities and 14% in cash. This is reflected in its lower yield of 5.9% as at 26 September.

The initial range of risk-graded portfolios was launched 19 months ago as a way of broadening L&C’s previously high net worth service to a greater number of clients.

London & Capital said its multi-asset approach had worked well over the years, with its Model Portfolio delivering an annualised return of approximately 9.5% per annum over the past 20 years.

All the portfolios are available through various platforms, including Novia, Transact and Ascentric.

Bruce Ely-Johnston, head of London & Capital’s adviser solutions team, said: "The demand for income, particularly in the low interest rate environment, has rarely been greater.

"Many of the intermediaries we have been working with on the managed portfolios have expressed interest in a vehicle paying a regular income, so we are delighted to introduce the new London & Capital Income portfolios."

 

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