Invesco Perpetual is rolling out a global absolute return income fund to sit within its multi asset range.
The Global Targeted Income fund is launching in response to the demand for sustainable income and will target gross income of 3.5 per cent a year above UK 3-month LIBOR pre-corporation tax. The fund will aim to preserve capital over a rolling three-year period and keep volatility at below half the level of the MSCI World index over that time.
David Millar, head of multi asset investment at Invesco Perpetual, will oversee the fund’s management with Richard Batty, Sebastian Mackay and Gwilym Satchell as co-managers supported by the group’s multi asset team.
The fund’s investment process will mirror that of the £7.3bn Invesco Perpetual Global Targeted Returns fund, co-managed by Millar and Batty with Dave Jubb, investing in 20 to 30 positions unconstrained by asset class and geography over a two-to-three-year period.
Millar says: “Conversations with our clients have highlighted a clear and growing need for sustainable income due to a challenging macroeconomic climate and an ever-lengthening retirement period. In today’s low yield environment, multi asset investing helps investors spread the overall risk taken while providing the opportunity for more stable returns compared to investing in just one asset class.”
The fund launches on 30 November and will sit in the Investment Association Targeted Absolute Return sector. The minimum investment is £500 with ongoing charges of 0.82 per cent, 0.87 per cent or 1.07 per cent for the different share classes, excluding portfolio transaction costs.