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