Equity income boutique enters retail market

A boutique global equity asset manager has partnered with Bennelong to launch its flagship fund to retail investors, having previously operated in the wholesale and institutional markets.

Wheelhouse Partners' Wheelhouse Global Equity Income Fund has embedded a derivatives-based solution that will benefit retirees' investment outcomes and combat market volatility and longevity risks.

Wheelhouse portfolio manager Alastair MacLeod said large investment losses, particularly in the five to 10 years immediately preceding and after retirement, can be devastating for retirees.

"This well-documented issue is known as sequencing risk. It's particularly relevant for retirees and pre-retirees due to the large sums of money involved, the relative lack of time that retirees have to recover from losses, and the necessity for retirees to draw down income during these periods."

The fund aims to manage such risks by investing in global equities as a growth asset and shaping returns to be retiree-friendly with lower volatility.

The fund's underlying portfolio is based on the semi-active Morningstar Developed Markets Ex Australia Wide Moat Index. Companies comprising the index must be able to generate excess economic returns for an extended period of time.

As above, Wheelhouse partnered with Bennelong Funds Management in May to launch the fund, initially for sophisticated and institutional investors.

Bennelong currently manages nearly $8 billion in assets.

Read more: MarketsAlastair MacLeodAustralia Wide Moat IndexBennelong Funds ManagementMorningstarWheelhouse Global Equity Income FundWheelhouse Partners
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