View more on these topics

Cautious hand from L&C

Discretionary fund manager London & Capital has recently introduced a cautious income portfolio to complete its range of multi-asset income portfolios.

The London & Capital cautious income portfolio has the lowest risk profile of L&C’s three income portfolios, which aim to provide an attractive yield and spread risk by investing in various asset classes. The new portfolio was designed in response to adviser demand for a more cautious strategy than the existing higher income and income portfolios. These cater for high and medium-risk profiles respectively.

The cautious income portfolio follows the same investment process as the other two income portfolios, diversifying across bonds equities and cash. But if will do so with different weightings than the higher-risk income portfolios.

For example, the cautious income portfolio’s strategic allocation to bonds is 60 per cent, which reduces to 57 per cent for the income portfolio and 44 per cent for the higher income portfolio. The higher the risk profile, the higher the equity weighting, while cash reduces the higher up the risk spectrum a portfolio goes. At the end at March, the cautious income portfolio offered a yield of around 4.4 per cent.

L&C’s platform-based discretionary management, with its emphasis on client risk profiles, seems ideally placed given that the retail distribution review is around the corner. The firm also places IFAs at the centre of its proposition, which could help it attract more business as the RDR approaches.

The new portfolio for the most attractive level of income that can be achieved within its cautious strategy, but returns from the other income portfolios will obviously be higher as they can take more risk.

Recommended

MM Profile: James Dean

By working alongside IFAs wanting to service clients who fall outside their business model, Decide2 managing director explains how the firm’s brand of focused or flexible advice presents the advice gap as an opportunity.

1

Wheatley warns building societies over risk

Financial Conduct Authority chief executive designate Martin Wheatley has warned building societies not to assume a mutual structure means there is less risk of consumer detriment. Speaking at the Building Societies Association’s annual conference in Manchester yesterday, Wheatley (pictured) said it would be a mistake for building societies to believe they are immune from the […]

3

Aviva’s Moss handed £1.3m exit payout

Outgoing Aviva chief executive Andrew Moss will receive a payout worth almost £1.3m following his decision to quit the provider. Aviva announced Moss’ decision to resign from the post this morning after almost five years as chief executive. Aviva chairman designate John McFarlane becomes executive deputy chairman and from July 1 will be made executive […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment