In an effort to target lower volatility and higher income yields, IOOF MultiMix Investments has launched a new defensive equities portfolio.
IOOF portfolio manager Dan Farmer said in a statement that the decline in cash and bond yields has meant income needs to be sought elsewhere.
“We believe that a specially constructed equity market exposure will allow us to address this,” said Mr Farmer.
“Due to the volatility of equities, not too much exposure can be taken within the more conservative funds. This is because higher yield comes at a price, in the form of higher risk.”
The statement said many managers feed defensive equities into their balanced portfolios as part of their mainstream Australian equity exposure, irrespective of the risk profile of the different balanced portfolios.
The volatility and uncertainty of share markets through the global financial crisis led to a greater focus on dividend yield as potentially a more secure source of return, it added.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 20 Nov 2018FASEA standards still raise questions: AFABy Eliot Hastie
- 20 Nov 2018Industry group slams ‘cosmetic’ changes by FASEABy James Mitchell
- 20 Nov 2018‘Culture’ at the heart of CBA advice failingsBy Adrian Flores
- 20 Nov 2018Netwealth reveals new licensee partnershipBy Adrian Flores
- 19 Nov 2018ClearView launches dealer services offerBy Adrian Flores
- 19 Nov 2018Lonsec introduces super research to advisersBy Sarah Simpkins
- view all