Heartwood Investment Management has thrown its hat into the multi-asset income ring with the launch of two products.
The CF Heartwood Income Multi Asset and the CF Heartwood Income Plus Multi Asset funds are to be managed by the firm’s investment team.
The Income vehicle has an expected initial yield of 3.5 per cent, with this rising to 3.9 per cent for the Income Plus fund.
Both will sit in the IA Unclassified sector.
Jaisal Pastakia, a member of the multi-asset management team, said: “The level of income has been selected to balance the need to provide a meaningful, sustainable income to investors, against the need to protect assets during volatile markets periods.”
The sub-4 per cent targets are in line with recent research by Aviva Investors, which showed advisers and investors thought an income yield above this level was not sustainable unless capital was put at risk.
Eight in 10 advisers and discretionary wealth managers thought an income of more than 4 per cent was not sustainable, according to Aviva Investors.
This was also recognised by their clients, six in 10 of whom agreed it was not feasible.
Heartwood IM head Noland Carter said: “We are enhancing our proposition to deliver higher sustainable levels of income in response to clients’ growing demand, [which is] based on changing retirement patterns and new pension freedoms.”
Heartwood offers four total return funds – Defensive, Cautious, Balanced and Growth – which it will continue to operate alongside the income offerings.