EQ Investors  

EQ Investors launches four risk-rated income portfolios

EQ Investors launches four risk-rated income portfolios

Boutique wealth manager EQ Investors has launched a suite of four risk-rated income portfolios in response to a growing demand for drawdown.

The Cautious, Cautious Plus, Balanced and Balanced Plus portfolios will be rebalanced at least four times a year, but this can be more frequent if there is a material change in circumstances, according to the investment firm.

The portfolios seek to achieve a yield of around 4 per cent, with a minimum target of 3 per cent, through investment across equity, bonds, commercial property and alternatives on a global basis.

At the time of writing, the number of underlying funds in the portfolios varied between 18 (Balanced Plus) and 21 (Cautious).

The portfolios will be managed by Damien Lardoux, who also manages the firm’s Positive Impact Portfolios, including the balanced risk profile which has returned 47.9 per cent since inception on 1 September 2012 (as at 30 September 2016) according to the company.

Mr Lardoux said: “These new portfolios have been developed for investors who are looking for an actively managed, well-diversified portfolio, and not just a single income fund approach. They complement our existing portfolios and we’ll incorporate ideas from across the range.”

The Positive Impact Portfolios, which provides access to socially responsible investments, were made available to advisers through the Alliance Trust Savings platform in late August.

Provider view

John Spiers, chief executive officer at EQ, said: “With more people using drawdown than ever before, it’s imperative that we offer a range of income portfolios to meet this growing demand. This new range of portfolios is designed for investors seeking a steady and sustainable return, while still retaining capital value. They will be based on the same disciplined investment approach that is the hallmark of all EQ portfolios. We expect them to be popular.

“Our experienced portfolio managers have a proven track record of managing multi-asset portfolios and are supported by a highly skilled team of investment research analysts.” 

Adviser view

Brian Hill, IFA at Wiltshire-based Jones Hill IFA, said: “We tend to stick to the passive end of the spectrum rather than use active managers because we do not think they offer good value for money.

“It does not surprise me that an investment manager is recommending an investment product as a retirement solution. As advisers, we take into account clients' long-term goals when calculating ideal investment returns. We seek to remove risk from a client's portfolio when possible so if a portfolio yield exceeds its targets, we stress-test it to identify where risk can be removed.”

Mr Hill added: “The best approach is a blended one, so clients can have peace of mind that their money will outlast them. Annuities still have a place in this day and age. A lot of my clients have taken them out to cover expenditure on things like council tax.”


Between 0.58 per cent for the Cautious strategy rising to 0.65 per cent for the Balanced Plus option.