Search for income will continue to be at the forefront of investors’ minds next year, as retirement saving dominates the agenda, according to JPMorgan Asset Management’s head of UK funds Jasper Berens.
Speaking to FTAdviser, he said that the need for diversification, against a backdrop of diverging global economies and policies, will be more important than ever before.
“With this in mind and a phenomenally different at-retirement landscape that’s emerged, we believe – without a shadow of a doubt – that many investors will be well served by multi-asset income funds as a result of these forces coming together.
“Such funds are easy to understand, accessible and lack complex and expensive guarantees.”
Elsewhere, Mr Berens said that oft-overlooked investment trusts also remain a key focus for the firm.
“We remain steadfast in fulfilling our duties as the UK’s largest provider of what was formerly perceived as one of the City’s best-kept secrets: investment trusts, otherwise known as close-ended funds.
“Whilst the RDR has helped to encourage a more level playing field, several popular myths and misunderstandings still overshadow these vehicles.
Mr Berens also re-stated the firm’s commitment to closing the knowledge gap within the financial adviser community, noting that in order for IFAs to remain independent, the Financial Conduct Authority has said they must review investment trusts as part of their due diligence.
“The greater engagement we’ve seen with close-ended funds is encouraging, as they are increasingly being incorporated into client recommendations and portfolios, but there’s inevitably some way to go.”
ruth.gillbe@ft.com
