TB Wise Multi-Asset Income Fund has moved from quarterly distributions to monthly income to facilitate advisers and clients with better cashflow planning and support evolving client demand in response to pension freedoms.
The income paid will be all dividends accrued each month with no smoothing of the payment. The fund’s management team has taken this decision as it believes it is in clients’ best interest, as it will distribute income quicker. This will allow greater flexibility for clients and advisers without affecting the investment decision-making process.
Commenting on the Fund’s move to monthly income, business development manager at Wise Funds, John Newton said:
“We are now seeing the impact of the 2015 pension freedoms really come through. This was the most radical change to private pensions for a generation and now clients need monthly income payments to work in the same way – getting regular amounts of money paid into their accounts each month. We are responding to an evolving landscape.
“We have also responded to adviser feedback, which has underlined that monthly income is favourable, as it stops advisers dipping into capital more frequently and gives the end user more flexibility over cashflow planning.”
Newton also explained natural income funds, such as the Wise Multi-Asset Income Fund, where units are encashed monthly or quarterly work well alongside or replacing drawdown, especially in challenging market conditions which could otherwise have serious implications on the long-term value of the portfolio.
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