The uncertain economic outlook, slashed dividends and historically low bond yields present considerable challenges for income seeking investors, however attractive yields can still be achieved without taking excessive risk. By looking beyond mainstream asset classes, the Psigma Fixed Interest Portfolio Service, from Psigma Investment Management, seeks to uncover quality opportunities offering both a sustainable income and the prospect of strong longer-term returns.

Designed for clients seeking a risk-managed, inflation-plus return, the Psigma Fixed Interest Portfolio Service is a conservatively run strategy that aims to achieve a net return of between 4% and 5% per annum and currently has an expected total annual return in excess of 5.5%*.

Key to delivering these returns is a globally diversified investment approach focusing on good quality credit with shorter durations. This is achieved by combining carefully selected funds with a number of specialist mandates only available through this portfolio. Currently the portfolio has a duration of around three years. To help manage risk, the portfolio has three core building blocks: sovereign debt, investment grade corporate credit and high yield corporate credit. Each component has been rigorously stress-tested with yields being priced conservatively, allowing for both a higher rate of defaults than forecast and a slower economic recovery than historically experienced.

Commenting on the opportunity, Thomas Becket, Chief Investment Officer, said:

“With persistently low interest rates and little likelihood of this changing over the coming decade, we believe that good quality fixed interest provides an outstanding opportunity for income-seeking clients.

“At Psigma we are still finding and seeing extremely attractive valuation opportunities. Historically, future returns have been excellent from these sorts of starting points.”

Notes to Editor

Minimum investment

£50,000

Annual management charge

0.5% (+VAT and underlying OCF) for first £2m

0.4% (+VAT and underlying OCF) next £3m

Custody, settlement and execution

0.12% pa (charged pro rata on monthly basis)

ISA eligible

Yes

Combined team fixed interest experience

40+ years

*All data as at 19th June 2020

 

About Psigma Investment Management

Psigma Investment Management is a privately owned Discretionary Fund Manager (DFM) offering investment solutions to private clients, charities, trusts and pension schemes. Launched in 2002, we now have over £3.5bn of assets under control (as at 31st December 2019).

Psigma is dedicated to inflation-plus investing, a philosophy that grows and protects the real value of our clients’ assets. Using dynamic asset allocation and being early adopters of a multi-asset approach, we provide investment portfolios that are constructed to deliver a return above inflation.

Psigma is part of the Punter Southall Group of companies.

For any PR or media relations queries, please contact the PR Team at pr@psigma.com, or by phoning 020 3327 5450.