We profile some of the most interesting fund launches in recent weeks and examine the performance of a product already on the market.
State Street Global Advisors (SSGA) has launched the Timewise Target Retirement Choice Fund, developed specifically for scheme members likely to remain invested in retirement.
The fund targets a balance of capital stability and growth. It is highly diversified across developed and emerging market equities, government and corporate bonds and a range of alternative assets. It also uses risk controls to mitigate volatility and avoid sequencing risk.
It allows investors the chance to draw down income over time, take periodic cash withdrawals, annuitise or use a combination of the above.
Nigel Aston, head of SSGA’s defined contribution business in Europe, says: “Retirement can be unpredictable and default funds need to be more intuitive by providing a broadly appropriate level of risk for members based on their stage of life, rather than targeting a specific outcome.”
Continuing the focus on retirement solutions, Baring Asset Management has launched the Baring Multi-Asset Income Fund. This is suitable for investors who are looking for a retirement income solution combining sustainable income generation across multiple sources.
The fund also offers rigorous risk management and aims to generate income as well as having the potential for medium to long-term capital growth. It targets an annual yield of 5%, with monthly distribution.
The Baring Multi-Asset Income Fund utilises diversification across multiple sources of income to deliver sustainable monthly income payments. The asset allocation process is combined with a securities selection process that aims to find the most suitable securities to provide sustainable levels of income.
The fund can have a maximum investment in equities of 65% of the portfolio, 80% in fixed income, up to 30% allocation to property, 25% in cash and a maximum 30% in alternatives.
Thomas Miller Investment (TMI), a member of the Thomas Miller Group of companies, has launched two Dublin-domiciled Ucits bond funds.
The TMI Sterling Bond Fund and TMI US Dollar Bond Fund are both registered for sale in the UK, and offer exposure to a diversified portfolio of debt and debt-related instruments. They are designed to maximise total return with a focus on income generation, with long-term preservation of capital. The funds will pay a semi-annual income distribution and will be daily dealing.
Carolyn Gelling, director and head of collective investment funds at Thomas Miller Investment, says: “These funds are designed to offer access to an actively managed portfolio of diversified fixed income securities, which has the flexibility to respond to anticipated changes in interest rates and use various strategies to preserve capital whilst seeking a consistent dividend.”
The launch of the bond funds is part of Thomas Miller Investment’s objective to grow its Collective Investment Funds business.
Axa Investment Managers (Axa IM) has launched the Axa World Funds Euro Credit Total Return fund, the latest addition to Axa IM’s euro credit range, which now has a total assets under management of €8.6 billion.
The fund aims to deliver a risk-adjusted return superior to market segmented performance over the credit cycle and offers investors an unconstrained approach to the European credit market. The portfolio’s construction is based on diversified allocation across three categories, including defensive, carry and value, which have been defined by their intrinsic fundamental and market drivers.
Ismael Lecanu, senior portfolio manager of the fund, says: “With strong structural support provided by the European Central Bank, we are constructive on the outlook for the European recovery and believe that there are ample investment opportunities thanks to disintermediation, innovation and regulation. These opportunities call for a flexible approach as they shift the market behaviour.”
Lecanu is supported by a dedicated team of five euro credit specialists averaging 13 years’ experience.
THREE YEARS ON
Standard Life Investments is celebrating the third anniversary of the launch of its Global Emerging Markets (GEM) Equity Oeic fund.
The fund, which aims to provide long-term growth, has provided a return of 28% over the past three years, compared to the benchmark of 20.4%, placing it in the top quartile of its peer group.
Standard Life Investments’ Asia and GEM Equity teams, which have an industry experience average of 16 years, comprise 11 investment managers.
Alistair Way, investment director at Standard Life Investments and the man with overall responsibility for the portfolio management of the fund, says: “We have seen dramatic changes across the global emerging markets landscape over the last three years. From a macro perspective, overall economic growth has slowed somewhat, however our GEM equity strategies are designed to produce repeatable outperformance from our bottom-up stock selection process.
“The last three years have also reinforced the need for a flexible investment outlook and process to take advantage of the opportunities.”
©2015 funds europe