Active from 29 July, the Baring Multi Asset Income Fund utilises a flexible risk-managed allocation strategy to target opportunities across the asset class spectrum.
Managed by Barings head of multi asset income Sonja Laud, who is supported by Alison El-Araby, a maximum of 65% of the fund’s portfolios can be invested in equities, with respective ceilings of 80% in fixed income, 30% property, 25% cash and 30 % in alternatives.
The UK-domiciled UCITS fund will seek annual yield of 5% – paid in monthly distributions – with half the average volatility of equity income vehicles, alongside medium to long-term capital growth.
“As income from traditional sources is under pressure, investors need to accept higher levels of risk for the same level of income in single asset class funds,” said Laud.
“This is why we will tactically adapt and diversify the asset allocation of the portfolio, aiming to gain exposure to rising asset classes in order to capture growth, and limit exposure to falling asset classes in order to protect capital, while opportunistically exploiting income opportunities when and where they arise.”
Laud arrived at Barings in August 2014, following global equities stints with Schroders and DWS Investments, while El-Araby joined the firm in 2012 after seven years at TT International Investment Management.
The launch comes seven days after Barings declared equities to be the best 10-year bet, and three weeks on from the firm warning of sluggish global growth during the next decade.
