Morley Fund Management and Barclays have joined up to launch a pair of income funds. The Global Balanced Income fund and the Cautious Income fund were both opened on 3 July with Morley managing the funds and Barclays taking control of their distribution through both adviser and institutional channels.
Targeting either 5.5% annual gross or 1% above base rate, the Cautious Managed fund invests in a portfolio of both investment grade bonds and actively managed global equities, with a 60%-40% bias to the former. The Balanced Portfolio - designed to replace Barclays's Global Income Plan - has 60% invested in actively managed global equities and 40% in bonds, in order to meet target yield of 7% per annum, or 2.5% above base rate.
Both portfolios combine stock selection with option-writing to improve income received from the underlying portfolio. The two funds will be available through Cofunds, The Bigger Picture and Transact.
The portfolios have both been launched with £20m seeded investment. Minimum investment is £5,000 and the initial charge is 4.5%, AMC on the Global Balanced Income fund is slightly higher than its Cautious counterpart, with the charges at 1.5% and 1.25% respectively.
Outlook for income
Chris St John to take over £3bn UK Select Opps