Discretionary fund manager London & Capital has launched an income portfolio that has a cautious risk profile.
The London & Capital cautious income portfolio is L&C’s third income portfolio and completes the range, which now spans the risk spectrum. It was designed in response to adviser demand for a more cautious strategy than the existing higher income and income portfolios that cater for high and medium risk profiles respectively.
The new portfolio seeks a moderate level of income from a mix of asset classes. It will follow the same investment process as the other two income portfolios, diversifying across bonds equities and cash in its long-term strategic asset allocation model.
However, it will have a higher allocation to bonds, at 60 per cent, a lower allocation to equities, 15 per cent, and a higher cash weighting at 25 per cent.
The strategic asset allocation for the higher income portfolio is 54 per cent equities, 44 per cent bonds and 2 per cent cash. For the income portfolio the asset split is 57 per cent bonds, 29 per cent equities and 14 per cent cash.
Due to its lower risk profile and asset split, the cautious income portfolio will provide a lower level of income than the higher income and income portfolios. The minimum investment for the portfolio is set by the wrap/platform provider and it carries a 0.25 per cent annual management charge.
It is eligible for inclusion in Isa and Sipp wrappers and will be regularly rebalanced back to the weightings in the strategic asset allocation model.
L&C head of adviser solutions Bruce Ely-Johnston says: “We work with advisers to give them what they want and need. We spend a lot of time talking to them and if we have not got it, we can make it for them.”