Income | Managed Funds

Cash and Fixed Income

There are many reasons why an investor may want to include a low-risk investment such as a cash or fixed income in their portfolio.

A cash fund may be an ideal investment when saving for a home or expensive asset, due to the relative stability of capital. For retirees, a cash or short-term fixed income investment may be suitable as part of a portfolio to help preserve capital and provide liquidity to meet living expenses.

For accumulation investors with a multi-sector strategy, cash and fixed income can help reduce the risk of the overall portfolio due to their low volatility and low correlations with other growth asset classes like equities. Equity investors may also use a cash fund to facilitate settlements.

Cash and fixed income is generally considered a lower risk asset class, especially when compared with more volatile sectors like equities and emerging markets.

Copia’s cash and fixed income investment solutions are designed to suit a range of investor return objectives and risk appetites.

Equity Income for Retirees

Studies show that more than half of Australians fear they will outlast their retirement savings.

A key challenge is that during retirement, Australians are no longer receiving a regular wage, and outside of the pension, we often need to rely on the performance of our retirement nest egg (the wealth we have created) to fund our lives.

In a low interest rate world, the options for an investment product to provide reasonable income above say 4%, with relative safety of your capital becomes more limited. The returns of both term deposits and annuities tend to suffer as interest rates decline.

While equities can provide attractive income and capital growth potential when interest rates are low, there is a higher risk of capital loss in the short term.

What if an equity fund can target an attractive income with a focus on preserving capital when markets are volatile?

Copia’s flagship equity income offering seeks to deliver exactly that, and is designed to meet retirees' needs for income with less volatility than the sharemarket.

Copia's Income Providers

• Mutual Limited

• Vertium Asset Management