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 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, while also giving them some capital growth. It aims to achieve this regardless of market conditions.
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 tactical investment limits. 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 pages, where you will find a Fund Factsheet, Key Features of the Fund and Past Performance data.