Psigma Investment Management has introduced a new Cautious Income strategy for investors to meet the need arising from the pension reforms.
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The cautious model portfolio service (MPS) strategy aims to deliver 2% above inflation with an estimated yield of 3%. Its total expense ratio (TER) would be a maximum of 1.35%.
The strategy seeks to generate defensive returns through diversified investments with a maximum weighting in developed and emerging market equities of 30%.
The fund, which has an annual management charge of 0.5% plus VAT, will be available on Transact, Ascentric, Aviva and the Fusion platforms.
Frank McGarry, director of sales and marketing at Psigma, said: "We have designed this new cautious income strategy to meet the need arising from the pensions revolution and it should also help our clients generate a healthy income in a yield-starved world.
"We are happy that our dynamic investment approach and focus on risk both protects portfolio returns when markets are falling and delivers strong performance in rising markets," he added.
