Invesco Perpetual has extended its multi-asset offering with the launch of the Global Targeted Income fund for David Millar and the multi-asset team.
The Invesco Perpetual Global Targeted Income fund will be managed jointly by Richard Batty, Sebastian Mackay, and Gwilym Satchell from the multi-asset team, headed up by Millar (pictured).
The fund will aim to deliver a gross income of 3.5% per annum above UK 3-month LIBOR, while aiming to preserve capital in all market conditions over a rolling three-year period.
It will also aim to keep volatility to less than half that of global equities over the same rolling three-year period.
The new product will use a similar investment process to the existing Invesco Perpetual Global Targeted Returns fund, and will aim to search for attractive investments unconstrained by asset class and geography.
It will typically have between 20 and 30 holdings at any one time with an investment horizon of two-three years. According to Invesco, this will give the managers the freedom to put together a diversified portfolio which can capture market upside.
The no-trail share class of the fund will have a charge of 1.07%, the y-share class will have a fee of 0.82%, and the z-share class will charge 0.87%.
Millar said: "Conversations with our clients have highlighted a clear and growing need for sustainable income due to a challenging macro-economic 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.
"Given Invesco Perpetual's long and established track record of income investing, alongside the success of its multi-asset investment approach, the Global Targeted Income fund seeks to help those clients looking for predictable monthly income, relatively low volatility and a focus on capital preservation."
IN May, Invesco Perpetual hired Sebastian Mackay from Standard Life Investments as a fund manager for its multi-asset team to help develop an income product for the range.
Continuing Square Mile’s series of informal interviews
Programme launches July 2017
'Focus on geopolitical risk'
'Project to remain within £80m budget'