26th June 2020

2 minutes reading time

Helping Clients Recover Income in the Current Environment

Jason Williams, Head of Distribution at Blackfinch Asset Management, discusses how our new Income fund can meet clients’ needs now.

We recently added the Adaptation Funds to the outsourced solutions we offer. These four new multi-asset trusts, all ESG-approved, include an Income fund. The launch has proved timely. For investors reliant on investment income, the current outlook is bleak, with dividend cuts and bond yields at rock bottom. Advisers can look to support clients with our solution, which seeks returns from a diverse combination of asset classes and sectors.

Income objective: The fund targets a minimum income yield of 3.5% p.a. after charges. This is while generating enough growth to cover all applicable management fees.

Fees not taken from income: They’re taken from the capital. So, investors don’t need to worry about the effect that fees have on their level of income.

Designed for income: We designed the fund using bespoke asset allocation that we have repeatedly stress tested and refined. This means we can target robust, regular income.

Bespoke asset allocation: We don’t use ‘off-the-shelf’ asset allocation and populate with ‘traditional’ income funds. We recognise all that these offer but we only use them in a small portion of the fund’s portfolio. As an example, the fund currently has an allocation of just 10.5% in UK equities. This area was previously renowned for income generation. But our allocation is much lower than most of our peers, setting the fund apart.

Diversification at every level: Our approach means we don’t rely on a single asset class, sector, fund or investment style to generate income returns. Using our bespoke asset allocation, we can look far beyond conventional asset classes. The result is a highly diversified portfolio. Here investments complement, rather than replicate, each other.

At Blackfinch Asset Management, we work as a true investment partner, helping advisers meet clients’ needs, and build up their own businesses. We’re also providing enhanced support to advisers during this uncertain period. We know that many are looking to reconfigure their businesses, including reviewing current outsourced solutions. We’re using this time to work with advisers in laying the groundwork for the future.

We’re available whether you have an initial question or would like an in-depth discussion. To speak to one of our team, just get in touch with us at [email protected] or on 01452 717070.

Capital at risk