Zenith rates Wheelhouse Global Equity Income Fund "recommended"
Zenith Investment Partners has initiated coverage of the Wheelhouse Global Equity Income Fund and given it a "recommended" rating, citing a "thoughtfully designed derivative overlay" as one of the reasons for the rating.
The fund invests in international equities, derivatives and cash, and is designed to deliver a an income return of 7 to 8 per cent, plus some capital growth, but takes on 40 to 50 per cent less risk than the equity benchmark.
“Overall, Zenith believes the Wheelhouse team has a wealth of experience relating to the options market and risk management, which ensures that the Fund's risk management processes are strong," the ratings agency said.
“The fund’s focus on capital preservation has also been recognised, an element we believe is paramount with markets touching new highs amidst widespread economic uncertainty. These defensive characteristics were amply demonstrated when the coronavirus pandemic spread globally, with the Fund posting a positive year-to date performance through to March 31, 2020,” Alastair MacLeod, managing director of Wheelhouse Partners, said.