Investment for Income

Wealth Management – Tactical Income

Our tactical income portfolios seeks to provide a return in terms of income over the medium term and aims to outperform cash, as measured by the published rate of the Consumer Prices Index (CPI) by a net yield of 1%. This rate will be checked at our regular investment meetings.

This would typically mean a portfolio invested in fixed income, equities, and other financial instruments and asset classes with a distribution between asset types.

The model is run without reference to any particular benchmark and therefore can said to be unconstrained as regards asset allocation. For example, if the investment managers can see little benefit in UK equities relative to other assets, they may be significantly underweight in comparison to traditional benchmarks, and in some circumstance they may have no exposure at all. Alternatively, they may be overweight in asset classes in comparison to traditional benchmarks and may consist of up to 100% in a single asset class in exceptional circumstances.

Wealth Management – Tactical Conservative

Our tactical conservative portfolio seeks to provide a total return in terms of both income and capital growth over the medium term and aims to outperform cash, as measured by FinEx Money Deposit 90 Days, by a margin of 2% over a one- year rolling period. This would typically mean a portfolio invested in a combination of government bonds, corporate bonds, and other financial instruments and asset classes. There would also be an equity component to enhance longer- term returns which would vary depending upon market conditions at the time.

The model is run without reference to any particular benchmark but within the parameters of the above performance measures and therefore can said to be unconstrained as regards asset allocation. For example, if the investment managers can see little benefit in UK equities relative to other assets, they may be significantly underweight in comparison to traditional benchmarks, and in some circumstance they may have no exposure at all. Alternatively, they may be overweight in asset classes in comparison to traditional benchmarks but it would be unlikely that no one asset class, with the exception of cash, would at any time form more than two thirds of the overall portfolio.