Old Mutual Global Investors has confirmed the launch of four multi-manager multi-asset income funds, as revealed by Fundweb in September.
The four funds, which will be managed by head of multi-manager John Ventre, will target a specific level of capital growth, such as CPI plus a certain figure, and a level of income from those funds (see table below).
The funds are called Generation 3:4, Generation 3:6, Generation 4:4 and Generation 4:6. The first figure is the CPI plus figure and the second figure is the yield.
The funds have a minimum investment of £1,000 and carry an annual management charge of 1.25 per cent.
Ventre says: “Our four new funds offer a variety of income solutions and address a real gap in the market, in particular those looking to enter in to income drawdown, but who are concerned about whether their pension will last the distance. With returns on cash and government bonds at, or near, historical lows and highly volatile equity markets, we believe that these products will form a complete outsourced solution to complement our spectrum funds and prove to be highly popular with investors who are looking for income.”
|Illustrative Asset allocation||Generation 3:4 / 3:6||Generation 4:4 / 4:6||Example funds|
|Cash||5%||0%||Deposit/ GSAM Cash|
|Global equities||15%||30%||Skandia Global Dynamic Equity (MoM)
OSAM Global Equity Income
|UK Equities||10%||15%||OMAM Mid-Cap
Schroder UK Equity Income
|Bonds||40%||25%||Liontrust Macro UK Income
Fidelity Corporate Bond
|Alternative Strategies||15%||15%||Twenty Four Short Duration Corporates
M&G Macro Episode
Morgan Stanley DAP
|Real Return||15%||15%||Fulcrum Alternative Beta+
Threadneedle Enhanced Commodities