Schroders launches multi-asset income fund

multi_asset2Schroders has launched an income fund that invests in various asset classes, regions and sectors.

The fund aims to offer quality income with more stable returns than could be achieved with an allocation to a single asset class.

Most income funds centre on either bonds or high yielding equities.

Aymeric Forest, senior multi-asset fund manager, will manage the Schroder ISF Global Multi-Asset Income fund with the objective to pay investors 5% per annum in equal quarterly or monthly instalments with an expected 7% total return per annum over a full market cycle.

The fund’s investment strategy focuses on investing in high quality global fixed income and global equity securities with positive cash flows and strong balance sheets. There is also a particular focus on risk management at the security and portfolio level.

Forest said: “We are currently seeing interesting opportunities within equities in healthcare in the UK and Japan, consumer staples in the US and Asia, and telecoms in China and South Africa. We are also finding attractive yields in some US municipal bonds and high yield debt and in local currency emerging markets with loose monetary policies.

“We are cautiously positioned within our exposure to financials and prefer bonds issued by US and UK insurers.”

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