Schroders has reacted to forthcoming pension reforms by bringing its £4bn Luxembourg-domiciled Global Multi-Asset Income fund onshore.
The group said a UK-based version would be launched on December 19 with its multi-asset team implementing the same strategy on the vehicle.
Robin Stoakley, managing director UK intermediary, said the pension reforms announced by chancellor George Osborne would see those approaching retirement given greater flexibility about how to manage their money when they stop working.
“The proposed changes also highlight investors’ need for solutions which generate levels of income above current cash returns and offer the potential to protect and grow capital,” Mr Stoakley added.
The fund will aim to deliver “regular sustainable income payments” by targeting an income distribution of 4-6 per cent per annum in monthly instalments and targeting a total return of 7 per cent.
The group said the investment strategy focuses on investing in high yielding and high quality global fixed income and global equity securities.
Schroders’ multi-asset team consists of more than 100 investment professionals worldwide who currently manage more than £60bn in assets across a number of global strategies, including £6.8bn in income strategies.
