Multi-asset  

Fund review: Openwork multi-asset

Fund review: Openwork multi-asset

Openwork has launched a multi-asset income fund as part of its plans to build on its earlier success.

The fund will be managed by Newton’s Nick Clay and Paul Flood and aims to produce a steady and sustainable level of income while maintaining investors’ spending over the medium term.

The company is one of the UK’s largest distribution businesses with a high quality investment proposition and will be backed up by Newton managing the fund, having been selected following a rigorous tender process by Openwork.

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The fund will invest across equities, bonds, alternatives and cash and will sit alongside three existing risk-rated model portfolios in the existing Openwork Graphene range.

The existing portfolios, Cautious, Balanced and Adventurous, comprise seven funds managed on a mandate basis by fund managers including Schroders, Jupiter and Threadneedle.

These funds have attracted a total of £1.2bn in assets since their launch last February and cover all major asset classes including UK, US and international equities and global and UK fixed income.

The group launched the fund in March in the run up to the pension freedoms. It will aim to provide income with the potential for capital growth over the medium- to long-term. It has an ongoing charge of 0.7 per cent and will have no entry or exit charge.

www.openwork.uk.com

Comment:

If you have a good track record, half your work is done. This holds true for Omnis’ multi-asset income fund. While it is one of UK’s largest distribution businesses, Newton, the company that’s managing the fund, is also a well-established investment manager.

Last February, Omnis, the asset management arm of Openwork, launched a series of funds that have managed to attract assets worth £1.2bn. With this being a success, Openwork has decided to experiment once again, but this time taking advantage

of the new retirement freedoms being introduced from April.

Openwork has got Newton’s top investment managers to handle the fund, giving its advisers and clients the best of services. This will help them tap into the retirement market with a lot more confidence.

The fund offers a flexible approach to investment with multi-asset income funds –giving investors the choice to put their money in equities, bonds, alternative assets or cash along with dedicated financial advisers.

This of course is not the first multi-asset fund launched in the market, especially as more and more firms are currently launching funds targeting the retirement market in the lead up to the pensions freedoms.

But the company has a good track record and investors may feel safe putting their savings into an established fund.