You are here: Home - Investing -

Product launch of the week: Schroder Global Multi-Asset Income fund

0
Written by:
01/12/2014
This week, we analyse Schroder's Global multi-asset fund, newly launched to UK investors.

What’s new?

Schroders is launching a global multi-asset fund. The Schroder Global Multi-Asset Income fund will be managed by the group’s well-respected multi-asset team and aim to deliver regular income payments of 4-6 per cent per year in monthly instalments.

They say…

Robin Stoakley, managing director UK intermediary, said: “The pension reforms highlight investors’ need for solutions which generate levels of income above current cash returns and offer the potential to protect and grow capital.

“The distribution yield [on the new fund] will be attractive to those investors seeking consistent income, while its multi-asset approach provides greater diversification than is typically available from conventional bond, equity or balanced mandates.”

Good news?

The fund has already been running since May 2012 as an offshore fund, so it is possible for investors to see whether it has delivered good returns. It has done well since launch: it is up around 20% since launch and is significantly ahead of its sector (http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=10F2K&univ=B).

The fund will offer a mix of assets, including stocks and shares, bonds and alternatives such as property. It will also invest across different countries. The multi-asset team will aim to tilt exposure to those areas that offer the best value at any given time. At the same time it will strive to generate an income of 4-6% – not earth-shattering, but better than that available from a bank account.

The fund is pitched firmly at the retirement market. Retirees need a blended fund, which protects against inflation and pays a reasonably reliable dividend. 

Any caveats?

The income is not guaranteed and may fluctuate. Equally, although the fund has delivered good returns to date, that has been against a backdrop of relatively benign bond and stock market performance and it may not be able to replicate those returns in future. The capital, therefore, is not protected.
However, the fund has a broad range of holdings, which mitigates risk to some extent. The Schroders’ multi-asset team is large and has a good reputation, and – as with all large asset managers – has a well-established risk management team.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How to get 5% interest without tying up your savings for years

You don't have to lock your money away to get an above-average return on your savings.
How to get 5% interest without tying up your savings for years

130 million old £1 coins still out there: what to do if you have one

An estimated 131 million old round £1 coins have yet to be returned to the Royal Mint, nearly three years afte...
130 million old £1 coins still out there: what to do if you have one

NS&I ups Premium Bonds prizes and boosts odds of winning

NS&I will increase the Premium Bonds prize fund rate and improve the odds of winning from June’s draw.
NS&I ups Premium Bonds prizes and boosts odds of winning

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week