Q: I am looking at this as a way to top up my pension to meet monthly expenses. Has this preformed the way it was meant to and what are the downside risks. Also do you feel the fees are appropriate. Harold
5i Research Answer:
It's early days, but the fund is performing as expected. Yields range from 7% to just under 9%, depending on age. Like any fund, there are market risks, and right now 48% is invested in financials This would be our main issue with the set up (too high in our opinion). But if one wants income for life and a chance at higher yields as one ages (or at least last longer than others in the pool) then it is a decent enough product. Fees are 0.60% which we would consider reasonable, in light of the higher admin costs in managing the product. We think it could form 'part' of an investor's retirement income allocation strategy.