The Income Portfolio
The Atlas Income Portfolio offers an alternative way of generating a regular income and is particularly popular with people near or in retirement. It offers a smoothed monthly income plus the potential for capital growth.
Target level of income
The Atlas Income Portfolio has been designed to give your client a sustainable minimum level of income of 4% per annum (not guaranteed), while also giving them some capital growth over the longer term. It aims to achieve this regardless of market conditions.
For the accounting year 01 August 2019 - 31 July 2020 we have a target yield of 4.25%* with a monthly payment of 0.81 pence per unit**.
To read more about the projected yield and PPU levels for the year August 2019 - July 2020 click here.
*The Atlas Income Portfolio minimum yield target is calculated on a Projected Yield basis, where the target level of yield (at least 4%) is applied to the Net Asset Value of the fund at the start of its accounting year. This creates the pence per unit that will need to be delivered over the coming 12 months in order to achieve the Projected Yield.
**II share class.
The Portfolio is designed to sit within a risk profile of 4 under normal market conditions (on a scale of 1 to 10, where 1 is low risk and 10 is high risk). This is based on Santander’s own risk scale. The nature of achieving a target income means that you should expect the risk profile to move between 3 and 5. We aim never to go above a risk profile of 5.
Rather than receiving a different level of income each month, we aim to smooth income levels over the year. This approach, alongside our objective of ensuring income levels are sustainable over the long term, helps your client plan with a degree of confidence.
How we invest
The Atlas Income Portfolio does not have a specific benchmark asset allocation, but is instead managed dynamically within defined investment positions. This means we can focus on ensuring we achieve the required income yield, regardless of the prevailing market conditions.
We invest using strategies that aim to enhance income yields and protect against market downturns. We invest in collective investment schemes and cash, and we limit investment in less liquid assets to no more than 10% of the Fund. We use derivatives to enhance income yields, although only some of the potential growth is sold in this way so that the Fund can still enjoy some capital growth.
The volatility bands are wider than those used within the Atlas Growth Portfolios due to the need to achieve the target income in varying market conditions.
What are the charges?
The Atlas Portfolios all have a low annual management charge of 0.40%, and we are committed to keeping our ongoing charges below 0.99%.
Find out more
If you would like more information on the Income Portfolio, please visit our Product Literature page. Factsheets, Key Features and Past Performance data for our Funds can be located on our Funds Prices, Performance and Documents Tool.