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Investments, Platforms

Capital-protected fund pitched at retirees

Pentalpha Investment Management will offer retiree investors access to its capital-protected Income for Life Fund through the launch of a retail ordinary class.

The Brisbane-based boutique manager said the new retail offering – Pentalpha Income for Life Fund Ordinary Class – would target a return above 6 per cent a year, which was a higher-yielding alternative to cash, term deposits and lower-risk interest rate securities.

Pentalpha executive chair and head of investments Denis Donohue said the manager produced a risk-managed target return rather than a performance outcome that was relative to benchmark or otherwise independent of the total return.

“One of the biggest challenges retirees face in framing their future income streams is balancing risk and return: how to live comfortably but also sleep well at night,” Donohue said.

“The strategy delivers certainty by ensuring a defensive line of protection is set under every single investment in the portfolio. This safety net is always in place, with the cost of protection funded by forgoing a proportion of potential share price appreciation, but only that proportion above an agreed level not required to deliver within our absolute return target range.”

Pentalpha said the fund would suit investors seeking regular income distribution, capital protection and long-term equity growth to offset the impact of inflation, including those transitioning into retirement, retirees, charities, trusts, foundations and family offices.

The fund is available through a number of platforms including Macquarie, Hub24, Netwealth, OneVue and PowerWrap.

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