Architas fund offers income to pensioners

Architas fund offers income to pensioners

Designed to satisfy the growing demand for income among investors, the Diversified Global Income Fund offers pensioners the flexibility they need, head of UK funds Cedric Bucher has said.

He 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.”

The multi-asset fund, which will be managed by chief investment officer Caspar Rock and investment manager Harry Darke. It currently has a 5.4 per cent gross yield, with capital growth over the medium to long term.

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The fund will invest in a mixture of active funds, tracker funds, exchange-traded funds and investment trusts across a spectrum of developed and emerging market equity and bonds, alternatives and cash including an element of currency exposure.

Adviser View

James Garman, financial planner at Nottingham-based Retirement Specialists, said: “It is good to see the fund houses trying to adopt a different approach to get good income and growth, the things most people are seeking especially at retirement. As an industry, we do need to be careful of investing in esoteric things, as we have seen before not all of these work.”