Prism launches multi-manager income fund run by Octopus

The Cheshire-based advisory firm is expanding its £200m fund of funds range with the launch of the IFDS Prism Distribution fund, which will aim to deliver a 4-5 per cent yield and capital growth at least in line with inflation.

Prism said the fund will have exposure to a range of asset classes, sectors and regions and hold active as well as passive investments.

Octopus’s Bish Limbu and Colin Lunnon already run Prism’s three existing funds - the £89.5m Cautious Growth, £77.1m Capital Growth and £21.3 Advanced.

Anthony Morrow, director at Prism, said the diversified strategy would help deliver a yield “less vulnerable to the fluctuations and volatility of any single asset class or underlying investment”.

He added: “With high inflation a serious concern for savers, many investors are seeking solutions that offer not only a regular income stream, but also capital growth that stays at least in line with inflation.

“The fund we have launched is designed to do just that and with the highly talented multi-manager team at Octopus in charge of fund selection I am confident it will be a successful addition to our existing range of funds which continue to deliver for investors.”

The fund is available on the Nucleus, Ascentric, Transact and Standard Life platforms.

Minimum initial investment in the fund is £1,000 while the annual management charge for the retail share class is 1.75 per cent.