Barings unveil multi-asset income fund

It is targeting an annual yield of 5 per cent with monthly distribution. It has been marketed as suitable for those wanting an income solution which will combine sustainable income cross multiple sources of income – along with rigorous risk management.

It aims to generate income as well as potential for medium- to long-term capital growth.

The fund has an ongoing charges figure of 0.77 per cent for the F-share class. The group says it is suitable for those wanting access to a sustainable source of income whether for retirement, long-term care costs or school fees.

www.barings.com

Comment

There has been an influx of multi-asset funds within the past six months and this will add to the multitude of retirement-friendly funds. Multi-asset income in particular has been branded as a solution for retirees, but as just a few months have passed, there is no proof it will be sufficient.

Traditional forms of income have been under pressure, so this new breed of fund may allow retirees and younger investors to adapt their portfolio asset allocation.

The appeal of a multi-asset fund comes down to the ease and the number of assets they can invest in through different market cycles.

But what will differentiate this fund from its peers is its monthly income payments (opposed to bi-annual or annual payments) and its high income target – 5 per cent.

The fund has allocation to roughly seven asset classes, as shown in the Chart, the majority in equities, followed by real estate, which is another area that has been targeted toward retirees wanting income.

This fund comes with an experienced manager, Sonja Laud, who has many years of experience, having joined Barings from Schroders nearly two years ago to become its head of multi-asset global income space.

Ms Laud also runs the Hong Kong-domiciled Barings Global Multi-Asset Income fund, launched earlier this year.