Since Pension Freedoms, advisers have had increasing responsibility for helping clients manage their income in retirement. The need for short term, liquid assets to accommodate clients who want to spend money when they stop work, or have a cautious approach to risk, continues to grow.
In response to adviser demand, Parmenion Investment Management (PIM) have created a new Sterling Solution that could meet these needs. The new solution will appeal to clients who are looking to further diversify their portfolio by investing in a low risk solution that still has the potential for some nominal returns.
A low risk DFM portfolio of money market funds
PIM Sterling Solution is a DFM portfolio made up of short-term AAA* rated money market funds, which can be held in all Parmenion wrappers including SIPP. Underlying exposure is to money market deposits and securities with average maturity of less than 60 days.
The solution’s initial yield will be 0.78% before charges (as at 01/08/2019) and 0.46% after OCF, Parmenion DFM and Custody charges. The custody charge for this solution will be set at a rate of 0.20%, and a DFM fee of 0.05%+ VAT to support a competitive return for investors.
Parmenion’s Chief Marketing Officer, Sarah Lyons, commented:
“Our new Sterling Solution greatly enhances our overall proposition. It offers, at low risk, a competitive level of income, consistent with institutional money market operations. Now we have a new option for clients with a need for liquidity in their financial plans.”
Commenting on the launch, Peter Dalgliesh, MD of Parmenion Investment Management, said:
“The complexity of the money markets should not be underestimated. Fund selection due diligence of money market funds has to be carried out very thoroughly in order to understand what level of risk you are exposed to, especially when higher yields are being offered.”
The new portfolio sits alongside Parmenion’s existing range of solutions which include fully active, passive, blended, ethical, retirement and income options, helping Advisers meet the investment needs of their clients.
The value of investments can go down as well as up and is not guaranteed, therefore investors may not get back the amount originally invested.
* The funds underlying the solution are AAA rated. The source of this information can be found in the following links:
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.