AXA Sun Life's forthcoming Global Distribution fund will have both income and accumulation share cla...
AXA Sun Life's forthcoming Global Distribution fund will have both income and accumulation share classes.
The fund launch, first reported in Investment Week earlier this month, will take place on 1 September. Global Distribution will be available as an Oeic, an Isa, as a life fund in conjunction with investment bonds and other life products, or as a pension fund which is attached to the full range of pension products.
A special offer of an extra 1% added to the allocation rate will apply to all single premium bonds received for Life Global Distribution fund for three months starting on 1 September. For the Oeic version, the initial charge of 3.5% will be discounted by 1% for three months.
Mike Munford, IFA business development manager at AXA Sun Life, said: "We believe there is a need for a cautious managed fund that has a global asset mix which would allow investors to take advantage of a more cautious investment strategy while still having some exposure to world equity markets.
"With interest rates so low, investors are prepared to take some risk to boost their return. We are seeing a greater willingness by investors to move their capital from deposits to equity-based vehicles with a low risk profile.
The provisional asset allocation is inflation-linked bonds at 35%, equities at 57%, fixed interest at 5% and cash at 3%. The estimated yield is 3.2% gross a year.
The inflation-linked bonds portfolio is 60% invested in the UK, 35% in the US, 6% in Sweden, 4% in France, 3% in Canada and 2% in Australia. It is benchmarked against an internal index.
The equity portfolio has 60% in the US, 20% in Europe, 10% in the UK, 10% in Japan and 10% allocated to other countries. It is benchmarked against the FTSE World Index.
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