Defensive portfolio providing above market yield for a retiree
Client wants to protect hard-earned capital and generate cash flow
Client B sold his business and retired after. He is in his 60s and wanted to protect his hard-earned capital and generate a stable cash flow for his retirement years.
Bankers sold funds and products which underperformed and are unsuitable
He was initially advised by his bankers to buy into multiple funds, structured products and bonds which have underperformed and are unsuitable for his needs. He also felt that the bankers were not able to competently answer investment questions and address his needs with a high level of care.
Bankers failed to advise well during a crisis
The sudden collapse of his portfolio during the Covid crisis in March 2020 was the final straw as the bankers failed to derisk his portfolio quickly despite increasingly clear signs of a collapse coming. During the depth of the crisis, they were shell-shocked and unable to give good clarity and advice.
01
Review Client’s Portfolio, Provide Clarity
Reviewed client’s portfolio in the depth of the crisis with regards to his long term needs.
Provided clarity on the market which led to logical and data-backed decisions to tactically sell some holdings while holding others which have fallen too much.
02
Clear plan and framework led to proactive actions
With a clear plan and framework, the client was ready to capture opportunities near the market bottom.
This results in proactive actions instead of being reactive. We managed to buy oversold bonds near the bottom, while keeping within the client’s low risk profile.
03
Optimize Portfolio, Achieved above expected yields for the long term
Optimized client’s portfolio by switching out of lower yield and costly holdings into higher yield and more cost-efficient ones, while keeping the overall risk the same.
Resulted in a portfolio which yields 5% compared to the original portfolio yield of 2.5%. This means more cashflow for the client’s retirement needs.