The fund will mirror the investment strategy of the existing Luxembourg fund and be managed by the same multi-asset team.
That team has over 100 investment professionals around the world managing over £60bn in assets across various strategies, including £6.8bn in income strategies.
The fund aims to deliver a distribution payment of 4-6% per annum in monthly instalments and will target a total return of 7% per annum with volatility between 5-7% per annum, and a maximum of 10%. The fund will try and pick out ‘high yielding and high quality’ global fixed income and global equities.
“The pension reforms announced by the government in the 2014 budget will mean an increase in choice and flexibility for those approaching retirement,” said Robin Stoakley, MD of UK Intermediary. “The proposed changes also highlight investors’ need for solutions which generate levels of income above current cash returns and offer the potential to protect and grow capital. The distribution yield will be attractive to those investors seeking consistent income, whilst its multi-asset approach provides greater diversification than is typically available from conventional bond, equity or balanced mandates.”
