26th November 2014
Schroders is launching a global multi-asset income fund targeting investors who plan to take advantage of the new pension freedoms being granted by the Government and who are seeking an income as they approach or begin their retirement.
The fund is due to launch on December 19 and will adopt the same investment strategy as the existing Luxembourg fund, Schroder ISF Global Multi-Asset Income, which has assets under management of £4 billion.
The Schroder Global Multi-Asset Income Fund will be managed by the multi-asset team, who currently manage the offshore version of the fund.
The team consists of over 100 investment professionals worldwide who currently manage over £60 billion in assets across a number of global strategies, including £6.8 billion in income strategies.
The fund aims to deliver sustainable income payments and superior risk-adjusted returns.
It targets, but does not guarantee, a distribution payment of 4-6% per year in monthly instalments and will target a total return of 7% per year.
Its volatility target is between 5-7% per year with a maximum of 10%.
The investment strategy will focus on high yielding and high quality global fixed income and global equities.
Robin Stoakley, managing director of UK intermediary at Schroders, said: “The pension reforms announced by the government in the 2014 Budget will mean an increase in choice and flexibility for those approaching retirement.
“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.”
He added: “We believe the Schroder Global Multi-Asset Income Fund is ideally suited to meet the needs of these investors.
“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.”