The number of boutique funds under the Bennelong Funds Management umbrella is expanding, with three asset management experts partnering to create a new business focused on retirees.
Bennelong has teamed up with Alastair MacLeod, Sam Jacob and Andrew MacLeod to establish Wheelhouse Investment Partners, aiming to deliver improved investment outcomes to Australian retirees primarily through equities.
Wheelhouse Partners provides access to the high growth asset class while accounting for market volatility, income generation, and the impact of management fees. Its initial offering, a global equity income strategy, will track a Morningstar index with a tailor-made derivative overlay, purpose built for retirees.
The business places particular focus on actual outcomes delivered as that is ultimately what investors receive and can differ significantly from simple time-weighted performance.
The global equity income strategy aims to minimise the risk of chronic loss when investors can least afford it, according to portfolio manager Alastair MacLeod.
"When Australians enter retirement, and have changed from accumulation to redemption mode, their investment objectives need to change too. Australians are fortunate to be living longer, which means investment strategies also need to change to minimise the risk of retirees outliving their savings, and the real-world outcomes that this represents," he said.
MacLeod said that while returns are important, the shaping of those returns, and the management of portfolio risk to better align outcomes with when retirees are most likely to have their life savings at work, can massively impact investor outcomes.
"The strategy is designed to have structural lowered volatility, improved capital preservation and higher income generation, all of which, when combined with a growth asset like equities, should work to narrow the range of investment outcomes," MacLeod said.
Bennelong chief executive Craig Bingham described the Wheelhouse Partners team as solid.
"Alastair and his team have a strong background, and proven track record. Bennelong's reputation has been built on its success in identifying and partnering with quality asset managers, offering high-grade investments. Wheelhouse Partners fits this model perfectly," he said.
MacLeod said Bennelong's philosophy to provide the environment for entrepreneurial, specialist asset managers to create relevant and sought after investment products was key to Wheelhouse's decision to join.
"Bennelong is the best at what it does in the market. With Bennelong providing the distribution, marketing, compliance, finance and administrative support, we are free to focus our attention on investment management and positive outcomes for investors," MacLeod said.
The Wheelhouse Global Equity Income Fund is now available for sophisticated and institutional investors, with plans to extend the offering to the retail market at a later date.