Invesco Perpetual is to launch an income version of its £7.3bn Global Targeted Returns (GTR) fund this week, targeting a yield of 3.5 per cent above Libor on a rolling three-year basis.
The multi-asset fund will be run by GTR manager Richard Batty, alongside Gwilym Satchell and recent recruit Sebastian Mackay. The latter joined from Standard Life Investments (SLI) earlier this year with a view to launching the product.
The trio will be supported by Invesco’s multi-asset investment team, led by David Millar.
The firm said it would attempt to achieve the 3.5 per cent yield target while taking half the volatility of global equities. Like the existing fund, it will use 20 to 30 investment ideas, some replicated from the GTR strategy.
Mr Millar, Mr Batty and David Jubb joined from SLI in 2012 and launched the GTR fund that year.
The absolute return strategy has seen £3bn worth of inflows over the past 12 months, making it the UK’s most popular retail product.
Invesco said it expected some GTR investors to move into the income version.
“Multi-asset investing helps investors spread the overall risk taken, while providing the opportunity for more stable returns compared with investing in just one asset class,” Mr Millar said.
The new fund’s retail ongoing charges figure (OCF) will be 1.07 per cent.
