MAM to unveil multi-asset income fund

MAM Funds is setting up an income multi-asset fund for managers James Sullivan and Martin Gray on May 4.

Martin Gray
Martin Gray

The Dublin-domiciled Miton Global Diversified Income fund will aim for an annual target yield of 4%. Around two-thirds of the fund will be invested in open-ended and close-ended funds. The rest of the exposure will be made up of direct equities and direct bonds.

The asset allocation at launch is expected to be 37% in bonds, 31% in equities, 10% in property, 10% in infrastructure, 6% in convertibles and 6% in cash.

The portfolio will have between 25 and 35 holdings and the fund is expected to sit in the Mixed Investment 40% to 85% Shares sector.

Initial charge is 5% for retail investors and annual charge is 1.5%. Minimum investment is £1,000.

Sullivan and Gray run the £775.5m Miton Special Situations portfolio, £221m Miton Strategic portfolio and the £18m Miton Arcturus fund.

Gray says there is investor demand for income, especially in a low-growth environment.

Adrian Lowcock, senior investment adviser at Bestinvest, says: “Investors are investing more in income funds and UK investors are looking to diversify their income by investing globally.”