Investments  

UBS launches global multi-asset income fund

UBS launches global multi-asset income fund

UBS asset management has today (February 27) launched its Global Diversified Income fund.

The fund will target a dividend yield of 4.5 per cent and will pay a monthly income.

The fund is managed by Philip Brides and Matt Bance. It will be in the IA Mixed Investment 20-60 per cent shares sector.

The minimum investment is £1,000 and the annual management charge at launch is 0.93 per cent.

The fund will invest in equity, fixed income, real estate, and other diversifying income assets such as insurance-linked securities, infrastructure and bank loans.

The latest fund complements UBS's existing range of multi-asset products, after it launched a multi-asset growth fund in January, and a defensive multi-asset fund earlier this month.

Multi-asset income funds are popular with many investors right now as they offer diversification away from equities, while the regular income payments are popular with advisers with clients in drawdown. 

Andy Larkin, head of UK wholesale at UBS Asset Management, said: "The UBS Global Diversified Income fund offers investors a complementary, diversified income fund, which, while suitable for all income seeking investors, could be a useful addition for retirement investors in drawdown or decumulation.

"This fund could have a major place within centralised retirement propositions to assist in the monthly income requirements, and also as a complementary Fund to unit encashment strategies when markets are volatile."

Patrick Connolly, head of communications at advice firm Chase De Vere, said: "This fund will tick a lot of boxes for many investors, offering an attractive and smoothed level of income and a globally diversified range of investment assets.

"However, while the credentials of the fund may look good, there are many similar decent quality funds already available, and investors with larger portfolios are likely to prefer a solution which is more focused to their individual needs."

david.thorpe@ft.com