Strategy 3 · Moderate Risk

Predictable distributions. Credit carry. Managed drawdown.

Five highest-Sharpe income funds, equal-weighted. Built for clients who want yield without the volatility of the active sleeves.

Approach

Income-first. Sharpe-screened.

Five equal-weighted income funds selected for the highest Sharpe ratio in their respective universe — Europe high yield, frontier markets, US high yield, and global income. More credit risk than Ultra Defensive, for meaningfully higher coupon.

Distributions are mostly monthly, giving clients predictable cash flow visibility. The Investment Committee manages the sleeve; individual fund selection is reviewed against drawdown and distribution consistency.

5.43%Annualised return
Underlying fund statistics³

0.48Sharpe ratio
Underlying fund statistics³

balance

Risk ProfileModerateCredit risk present — more yield than Defensive, less volatility than active sleeves

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DistributionMonthlyMostly monthly distributions for predictable client cash flow

³ Statistics of underlying third-party funds. Past performance is not a guide to future performance.

Portfolio Construction

How the sleeve is built.

Selection is Sharpe-first within each sub-universe. Drawdown history is a secondary filter — funds with outsized historic drawdowns are excluded regardless of return. Equal weighting avoids concentration in any single issuer or region.

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Europe High Yield

Highest-Sharpe European HY fund. Credit carry in EUR corporate bonds with active duration management.

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Frontier Markets

Higher-yield emerging and frontier exposure. Compensates for credit and liquidity risk with above-market coupon.

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US High Yield

Largest and most liquid HY market. Spreads provide a cushion; short-to-medium duration limits rate sensitivity.

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04–05

Global Income

Two global multi-asset income funds. Diversify across geographies and instrument types; stabilise the sleeve's distribution cadence.

Fees

Transparent, outcome-aligned.

Management Fee0.50%Per annum, charged annually

Performance Fee20%Above 5% hurdle · High-water mark applies

Dealing CostsAt costCharged by broker at its own rates, separate from our fees

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³ Underlying fund statistics. Past performance is not a guide to future performance. Plus dealing costs at the broker's own rates.

Independent advice. Client-held assets. Transparent alignment.

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