Tideway’s entire business is focused on delivering secure income to investors with irreplaceable capital and protecting this capital from equity market downturns and the long-term effects of inflation.
At the core of Tideway’s post transfer investment proposition is hybrid capital, a form of corporate bond which are issued by many blue-chip companies but offering significantly higher returns than gilts or the highest rated corporate bonds.
Hybrid capital bonds are largely inaccessible to most private investors and investing via a regulated collective investment fund is essential. Tideway operates three regulated UCITs funds that trade daily and invest, in part or, fully in these bonds. These are combined with funds managed by other leading UK fund managers to create Tideway’s Horizon Portfolio suite. Download a guide to these portfolios by clicking here.
The portfolios typically have lower than average exposures to equities with higher than average exposure to fixed income than comparable portfolios with similar risk ratings from other wealth managers.
This generally means, lower volatility in the value of the portfolio as the fixed income funds tend to be more stable than equity funds. It also means portfolio returns tend to be more predictable. For example approximately 70% of the target return expectation of Tideway’s Horizon Drawdown Two portfolio, designed for the low to medium risk drawdown investor, is met in the form of either corporate bond coupons, or share dividends secured from the underlying investments. Regularly paid dividends and coupons giving much more reliable and predictable returns from outset, than capital gains that may take years to materialise.
Please remember investment returns cannot be guaranteed and may not meet or exceed inflation after fees. If they fail do so your drawdown income will fail to last as long as initially predicted. Your initial capital is at risk and the value of your investments and the income they produce can fall as well as rise.