The ‘tactical income portfolios’ aim to match investors’ risk appetite and target incomes regardless of market conditions.
The funds use derivative strategies to supplement their natural income generation. Investment in each fund is limited to a maximum of 35% of the value of each portfolio.
The range starts with a portfolio targeting yield of 3% with average annual returns of 4.78%. Each of remaining portfolios then offers yield of 0.25% more than the last up until the highest yielding option at 5.25%.
The average annual return on the range moves up gradually to 8.52% from the 4.78% entry point. Average volatility being targeted starts at 1.68% on the lowest yielding option and moves up quite significantly to 12.88% on the top end of the yield target range.
“Extensive analysis of our asset allocation methodology has been undertaken in designing these portfolios,” said Peter Dalgliesh, Parmenion managing director. “We’ve always focused on investment risk and risk is even more relevant within an income solution, where there’s a need to meet income requirements there is also a need to protect capital value from erosion,” he added.
Parmenion was founded in 2007 and has assets under management of over £1bn invested across its range of more than 100 different discretionary investment options.