MLC has unveiled a suite of three new Inflation Plus portfolios which it says will help advisers manage inflation risk in client portfolios.
The three portfolios are labelled conservative (for risk averse investors such as retirees), moderate, and assertive (for risk tolerant and accumulation phase clients) and are available on through MLC Investment Trust, MLC Wrap and MLC Navigator (and badges).
MLC Investment Management head of investments Susan Gosling told ifa the portfolios contain a flexible asset allocation designed from an total return perspective.
The allocations vary based on investment conditions in order to control inflation risk, and are designed to deliver inflation plus returns over three, five and seven year periods, she added.
“These funds, if something goes wrong and we have another 2008, we should have already thought about that and built protection in. There are no excuses with these portfolios,” she said.
“Retirees want peace of mind, not nasty surprises, but they still want a comfortable lifestyle.”
MLC chief investment officer Jonathan Armitage said inflation may not currently be front of mind or present immediate portfolio risks but is “definitely something we’re worried about.”
Inflation is effectively a “silent tax” that creeps up on people who don’t realise the impact it has on their portfolios until it has already diminished the relative value of their savings, he said.
“To help people in investment portfolios, whether pre or post retirement, you should have part of the portfolio which is designed to deal with the potential threat of inflation,” he said.
The ifa Excellence Awards are back in 2021 and nominations are now open! This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021!
The Federal Court has issued BT and Asgard penalties of $1.5 million each for charging fees for no service and making misleading statements. ...
The wealth giant has announced a raft of further changes to its advice model, including the conclusion of client register buy-back arrangements for i...
The latest ASIC estimated industry funding levy proves that the current formula is “not equitable or sustainable” according to FPA. ...