EXPERT VIEW
Patrick Connolly, certified financial planner, Chase de Vere
“Investment houses didn’t initially seem sure how to respond to the pension changes, but they have now mostly concluded that the answer is a multi-asset income fund. As a result, we’re seeing more of these products being launched, revamped or promoted.
“This is a trend that seems likely to continue to the extent that most investment companies will have these funds in their armoury.
“Multi-asset income funds may have an important role to play, not just in terms of the new pension rules, but also in terms of investors’ need for income and diversification. So for investment companies, these products can effectively kill two birds with one stone.
“However, it would be a mistake for advisers to think that one multi-asset income product is necessarily like another. There are significant differences in terms of quality, approach and performance, and, as ever, the advisers’ job will be to separate the wheat from the chaff.”
JPM Multi-Asset Income
Managers: Talib Sheikh and Michael Schoenhaut
Assets under management: £387m (for UK fund)
Launch date: June 2009
Sector: IA Mixed Investment 20-60% Shares
Performance since launch:* 75.26%
Threadneedle Global Multi Asset Income
Manager: Toby Nangle
Assets under management: £3.2m
Launch date: July 2014
Sector: IA Mixed Investment 20-60% Shares
Performance since launch:* 7.05%
Old Mutual Generation Target 4:4
Manager: John Ventre
Assets under management: £73.5m
Launch date: November 2012
Sector: IA Unclassified
Performance since launch:* 20.88%
Newton Multi-Asset Income
Managers: Paul Flood and Nick Clay
Assets under management: £11.2m
Launch date: February 2015
Sector: IA Flexible Investment
Performance since launch:* 0.12%
Schroder Global Multi-Asset Income
Managers: Aymeric Forest and Iain Cunningham
Assets under management: Not yet available
Launch date: December 2014
Sector: IA Mixed Investment 20-60% Shares
Performance since launch:* 1.86%
Franklin Diversified Income
Manager: Toby Hayes
Assets under management: £4.78m
Launch date: May 2014
Sector: IA Flexible Investment
Performance since launch:* 8.98%
BlackRock Global Multi-Asset Income
Managers: Michael Fredericks, Justin Christofel and Peter Wilke
Assets under management: £76.88m
Launch date: January 2015 (for UK strategy)
Sector: IA Mixed Investment 20-60% Shares
Performance since launch:* 1.64%
Psigma MPS Cautious Income
Manager: Tom Beckett
Assets under management: Not yet available
Launch date: September 2014
Nearest relevant peer group: Arc Sterling Cautious PCI
Net performance since launch:* 2.59% (Source: Psigma Investment Management)
Aviva Investors Multi-Strategy Target Return
Managers: Peter Fitzgerald and Dan James
Assets under management: £439m (Share Class 2)
Launch date: July 2014
Sector: IA Targeted Absolute Return
Performance since launch:* 7.35%
*All performance data to March 4 2015 / Source: FE Analytics
