The CF Heartwood Income Multi Asset Fund and the CF Heartwood Income Plus Multi Asset Fund are expected to yield 3.5% and 3.9% respectively. These are not fixed targets though and the priority will be to maintain the stability of the nominal payment to investors.
Both funds sit in the IA Unclassified sector. They are managed by Heartwood’s investment team in a collective manner.
The core share class for IFAs is the I share class which has an AMC of 0.75%. The Income fund launches with an AUM of £32.6m and the Income Plus fund has an AUM of £35.6m
“We have been successfully managing income strategies for many years, and we are now enhancing our proposition to deliver higher sustainable levels of income in response to clients’ growing demand,” said Noland Carter, head of Heartwood Investment Management. “We see this demand based on changing retirement patterns and new pension freedoms, and global multi-asset strategies are well placed to meet this need.”
“Our aim is to smooth the investment journey for clients by delivering a stable income stream whilst protecting downside risk,” said investment manager Jaisal Pastakia. “The key to achieving yield and managing volatility is finding the right blend of assets, and this is where we believe the global multi-asset class approach offers access to a wider set of opportunities.”
Heartwood’s total return range includes Defensive, Cautious, Balanced and Growth options. These will continue to operate as normal alongside the new offerings.
The firm has over £2.4bn of assets under management and administration, as of 30 June 2015.
