The asset manager says the new strategy is ‘designed to meet the need arising from the pensions revolution’
The new strategy is modelled on Psigma’s existing cautious strategy and will also attempt to generate defensive returns through diversified investments with a maximum weighting in developed and emerging market equities of 30%.
It has an investment objective of inflation +2%, estimated yield of circa 3%, an annual management charge of 0.5% plus VAT and a total expenses ratio of a maximum 1.35% including VAT.
A platform version of the new strategy will be available on Transact, Ascentric, Aviva and the Fusion platforms.
“We have designed this new cautious income strategy to meet the need arising from the pensions revolution and it should also help our clients generate a healthy income in a yield-starved world,” said Frank McGarry, director of sales and marketing. “It is likely that the inevitable path of interest rate rises will be shallow, and our new Income Strategy will fulfil the growing hunger for income.”
“Although there are now many managed portfolio services across the wealth management industry we are proud to have been a pioneer of this approach, recognising a decade ago that the industry’s best growth opportunity lay in the institutional approach of multi-asset, multi-manager investing,” McGarry added.
