Asset manager Invesco has launched the Invesco Summit Income Fund (UK), a fund of funds aimed at helping UK financial advisers provide reliable income streams for clients, especially retirees.
The fund targets an income return of 2-3% above the Bank of England Base Rate over a 12-month rolling period paid monthly.
The fund will generate income from diverse asset classes and geographies, offering both natural and enhanced sources. It aims to provide a consistent income stream for investors, particularly retirees drawing regular income from their retirement savings.
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Additionally, downside risk management is another key feature of the Fund. According to Invesco, the ability to look beyond traditional defensive investments such as bonds and utilise alternative investments can help dampen volatility in times of market turbulence.
The fund combines active and passive strategies, targeting at least 60% in debt securities, cash equivalents, and money-market instruments, with up to 40% in equities, related securities, and commodities.
The fund is managed by David Aujla, John Burrello, Gwilym Satchell and Alessio de Longis from Invesco’s multi-asset strategies team, supported by a global team.
The fund complements the Summit Growth and Summit Responsible ranges by adding an income solution. The Summit Responsible Range features five global multi-asset funds focused on responsible investing and ESG considerations.
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The launch follows Invesco’s recently announced strategic partnership with retirement specialist Just Group, which will bring together Invesco’s model portfolio service and Just’s guaranteed income-producing asset, delivered through its Secure Lifetime Income solution, to develop a flexible new retirement proposition for advisers.
Aujla commented: “We aim to deliver dependable income from a diverse, global range of sources within a tightly controlled risk management framework, so that investors can have the confidence in retirement that they need. The fund’s focus on delivering regular income in a variety of income environments, while limiting drawdowns, is a compelling proposition for investors – particularly those closer to retirement.”
Kate Dwyer, head of UK distribution, added: “Retail advisers in the UK are increasingly outsourcing portfolio construction and we believe today’s investors need funds that are simple, transparent, diversified and cost effective.”
