Architas has launched a global multi-asset fund as investors continue to hunt for income and ahead of the pension reforms in April.
The Architas Diversified Global Income fund aims to provide income through investing in equities, fixed income and alternative investment funds together with capital growth over the medium to long term.
The fund will also invest in a combination of active funds, tracker funds, exchange traded funds and investment trusts across a “broad spectrum” of developed and emerging market equity and bonds, alternatives and cash.
The multi-asset fund of funds structure will be managed by Architas chief investment officer Caspar Rock alongside investment manager Harry Darke.
Mr Rock said that for retirees to have the majority of their investments in UK equities was “not the answer” in the current environment and suggested an “element of alternatives” in a portfolio, adding, “I want to pay you to be patient”.
“The fund includes a significant exposure to alternatives income sources, such as specialist property, social infrastructure, renewable energy and asset leasing funds.
“These assets in particular have a lower correlation to traditional equity and fixed income markets and their attractive risk return profiles makes them a useful investment tool we use across our portfolios.”
The fund currently has a 5.4 per cent gross yield based on the portfolio launch, while ongoing charges will be capped at 140 basis points.
Architas stated the fund will not be risk profiled as its principal aim is to provide an “attractive and sustainable” income while managing the risks within the portfolio.
Cedric Bucher, head of UK funds at Architas, said: “With the pension reforms from April introducing more flexibility for investors at retirement, coupled with the current low interest rate environment, we believe many people will choose income generating investments over traditional annuities.”
This latest offering follows the launch of the Architas Diversified Real Assets fund, with the retail share class launched in December last year.
