Discretionary Income Portfolio

Discretionary Income Portfolio

Many of our clients want or need a regular income but are also keen to ensure their capital in not eroded by the impact of inflation. To try to address these dual needs, we offer a Discretionary Income Portfolio.

The Discretionary Income Portfolio offers a strategic approach to investment driven by our investment committee and following a similar process to that used in our other portfolios but with a greater focus on income generation.

Investments are selected on a best-of-breed basis and will include both active and passive investments. Whilst some investments may be more income-oriented and others more growth-oriented, overall, the portfolio is designed to ensure we always consider the duel needs of investors.

The portfolios are designed to deliver a sustainable and growing level of “natural” income in the form of interest and dividends in addition to capital growth. Typically, we expect investors will take this “natural” income as withdrawals.

As you will see from the chart below, from a risk point of view, the Discretionary Income Portfolio sits in the middle of the range of portfolios we offer.

What is included in the Income Portfolio Service?

• A strategic approach to investing money, driven by the A J Bell investment team working in conjunction with us and using defined risk parameters.
• A portfolio with a specific tilt to reflect investors need for “natural” income.
• Portfolios that are tactically adjusted each quarter to reflect the Committee’s view on the most appropriate mix of assets to hold for a given investment objective and key changes in the market.
• Investments that are selected on a whole of market, best-of-breed basis.
• Our Discretionary Managed Portfolios are available via the A J Bell platform, a low-cost platform which offers functionality we believe is suitable for the majority of our customers.