Four new income-focused portfolios from AJ Bell
13 March 2018
AJ Bell has launched four new income-focused portfolios within its Managed Portfolio Service.
The four funds have been designed to provide a specific level of income, offering either capital or inflation protection, the firm said.
The funds are divided into two different investment strategies, which are available as a passive or active underlying portfolio.
Income 1 has a target yield of 4% and aims to offer long-term capital protection. The passive portfolio has an underlying OCF of 0.34%, while the active portfolio has an underlying OCF of 0.66%.
Income 2 has a target yield of 4% and aims to offer long-term inflation protection. To protect against possible interest rate rises, the portfolio has no exposure to bonds. The passive portfolio has an underlying OCF of 0.35%, while the active portfolio has an underlying OCF of 0.73%.
Kevin Doran, chief investment officer and managing director of AJ Bell Investments (pictured), said: “The search for income remains a key investment priority for many investors, particularly in the extended low interest rate environment and with many more people remaining invested in retirement and utilising the new pension freedoms. Advisers have told us that an income option in the MPS would suit a significant number of their clients and we are pleased to be able to launch these four new portfolios for them.”
All of the portfolios are benchmarked against Distribution Technology’s Dynamic Planner risk ratings and are also mapped to Finametrica’s risk levels.
AJ Bell said the portfolios will be particularly relevant to income drawdown clients.
A recent decision by the FOS to uphold a complaint against Intrinsic Financial Planning highlights several issues with how...
Defined benefit (DB) transfers remain topical and the Financial Conduct Authority (FCA) continue to find problems in this market....
In our last Parameters survey we asked paraplanners to name the business and non-business book they would recommend to...