Handforth wealth managers target risk averse investors with new fund

Handforth based wealth managers at Equilibrium, have announced the launch of a new defensive fund, aimed at more risk-averse investors.

The new fund aims to offer a lower risk option for investors, while still aiming to achieve a 3% annual return on investment. Equities and related securities account for less than 25% of of the fund’s asset allocation, with 70% derived of fixed interest.

Mike Deverell, partner and investment manager at Equilibrium, explained:

The defensive fund presents a lower risk than our core funds but is, of course, not without risk.

“We feel it’s most suitable for those with a lower risk tolerance, or for those with shorter timescales. It may be suitable for a small part of portfolios, especially where large cash balances are held.

“It’s been the case for some time now that people are getting a very low return on cash, and it’s recently got demonstrably worse.

“We hear complaints from clients about their returns on cash frequently, but what we often find is that many of them want to leave a chunk of money in cash as an ‘emergency’ fund. It is our hope that launching the defensive fund will bridge that gap and offer a solution for our clients who are seeking a lower return and less risk.

“We also think last year’s hugely volatile markets may have led to some investors deciding that they’d prefer to take a bit less risk than before as they don’t need to aim for high levels of return.”

The Handforth based firm of wealth managers is hoping to raise between £30 million and £50 million for the fund’s launch.

The new defensive fund will be the second in a year to launch, with Equilibrium starting a £20 million global equity fund in summer 2020 that is aimed at longer-term investors.