Parmenion launch new Sterling Solution
Since Pension Freedoms, advisers have had increasing responsibility for helping clients manage their income in retirement. The need for short term, liquid assets to accommodate clients who want to spend money when they stop work, or have a cautious approach to risk, continues to grow.
In response to adviser demand, Parmenion Investment Management (PIM) have created a new Sterling Solution that could meet these needs. The new solution will appeal to clients who are looking to further diversify their portfolio by investing in a low risk solution that still has the potential for some nominal returns.
A low risk DFM portfolio of money market funds
PIM Sterling Solution is a DFM portfolio made up of short-term AAA* rated money market funds, which can be held in all Parmenion wrappers including SIPP. Underlying exposure is to money market deposits and securities with average maturity of less than 60 days.
The solution’s initial yield will be 0.78% before charges (as at 01/08/2019) and 0.46% after OCF, Parmenion DFM and Custody charges. The custody charge for this solution will be set at a rate of 0.20%, and a DFM fee of 0.05%+ VAT to support a competitive return for investors.
Parmenion’s Chief Marketing Officer, Sarah Lyons, commented:
“Our new Sterling Solution greatly enhances our overall proposition. It offers, at low risk, a competitive level of income, consistent with institutional money market operations. Now we have a new option for clients with a need for liquidity in their financial plans.”
Commenting on the launch, Peter Dalgliesh, MD of Parmenion Investment Management, said:
“The complexity of the money markets should not be underestimated. Fund selection due diligence of money market funds has to be carried out very thoroughly in order to understand what level of risk you are exposed to, especially when higher yields are being offered.”
The new portfolio sits alongside Parmenion’s existing range of solutions which include fully active, passive, blended, ethical, retirement and income options, helping Advisers meet the investment needs of their clients.
The value of investments can go down as well as up and is not guaranteed, therefore investors may not get back the amount originally invested.
* The funds underlying the solution are AAA rated. The source of this information can be found in the following links:
“The above article is intended to be a topical commentary and should not be construed as financial advice from either the author or Parmenion Capital Partners LLP. If a client wishes to obtain financial advice as to whether an investment is suitable for their needs, they should consult an authorised Financial Adviser. Past performance is not an indicator of future returns.”
Any news and/or views expressed within this document are intended as general information only and should not be viewed as a form of personal recommendation. All investment carries risk and it is important you understand this. If you are in any doubt about whether an investment is suitable for you, please contact your financial adviser.