The portfolio will target a yield of about 4% at launch and is designed to offer investors a more diversified source of income than they have been able to reach through the traditional focus on UK-based investments.
The strategy will be benchmarked against a composite index of 65% global income-generating equities and 35% corporate bonds. It also claims to offer a greater potential for dividend growth by broadening the income universe to include Asia and emerging markets.
Quilter plans to use the same investment and fund selection process that it has used for over 11 years in the management of its UK-focused Income Strategy. This strategy has outperformed the benchmark since launch in September 2001.
Julian Menges, Quilter’s joint head of MPS, said: “This low interest rate environment seems set to continue, so Quilter’s new strategy is likely to prove very attractive to IFAs seeking a more globally diversified and higher income-producing portfolio than has traditionally been available for their clients.”
The launch of the new product takes the number of strategies offered through MPS to eight. It joins the existing Adventurous, Growth, Balanced, Income, Conservative, Defensive and Absolute Focus strategies.
