Schroders has launched an income fund investing in global multi-assets and aiming to pay a regular income of 5%.
Managers Aymeric Forest, head of Schroders’ multi-asset investments team for Europe, and Iain Cunningham also aim for a total return of 7% each year.
A specialist equity investment team and the global fixed income team provide support to the fund, called the Schroders Global Multi-Asset Income Fund.
The fund will invest across a variety of sectors, countries and asset classes, including shares, bonds and cash.
Equities are the preferred asset class at launch, with a focus on financially strong companies that have stable and growing cash flows and are attractively valued. Favoured areas include US technology, consumer sectors and UK healthcare.
The fixed income team will invest in a combination of higher-quality investment grade corporate bonds, riskier high yield bonds, government bonds, and emerging markets debt. A minimum of 60% of the fund will be invested in fixed income assets.
The fund will hold a maximum of 20% in cash, while a further 10% can be invested in alternative assets, including listed property and infrastructure companies. It can also use derivatives and invest in emerging markets, which increases risk.
The fund will be based on an existing, offshore version of the fund, which Aymeric Forest and Iain Cunningham have managed since its launch in April 2012. Over this period, the fund has delivered a total return of 21.2%.
Schroders has £276.2 billion (€354.4 billion) in assets under management, as at 30 September 2014.
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