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Invesco
Global asset management firm Invesco has launched the Invesco Summit Income Fund (UK), which aims to help UK financial advisers meet the needs of their clients seeking a stable stream of income, particularly in retirement.
The company said in a statement that the fund has been launched in response to growing demand for income from clients, particularly those in the de-capitalisation phase of retirement. The fund targets income returns of 2-3% above the Bank of England base rate, paid monthly over a 12-month rolling period.
The fund will derive income from both natural and enhanced sources across various asset classes and geographies. The fund aims to support investors who wish to earn regular income from their retirement savings after retirement, providing them with a regular and stable source of income, it added.
In addition to returns, managing downside risk is also a key feature of this fund. Its ability to leverage alternative investments beyond traditional defensive investments such as bonds helps tame volatility, especially during times of market turmoil.
The fund aims to achieve its return objectives while managing risk by targeting at least 60% investments in fixed income securities, cash equivalents and short-term money market instruments and allocating up to 40% to equities, related securities and instruments through collective investment schemes and direct investments.
The fund is managed by David Awjila, John Burell, Gwilym Satchell and Alessio de Longis, members of Invesco’s multi-asset strategies team, which manages more than £128 billion in assets for clients globally.
The firm said the fund builds on and complements its Summit Growth and Summit Responsible fund series by adding income solutions to its existing risk-focused funds. The Summit Responsible Series includes five risk-focused global multi-asset funds with a focus on responsible investing and ESG considerations.
The launch of this fund follows Invesco’s recently announced strategic partnership with retirement specialist Just Group, which will combine Invesco’s model portfolio services with guaranteed income generating assets delivered through Just’s Secure Lifetime Income solution to develop a flexible new retirement proposition for advisors.
“We aim to provide stable income from a range of diverse, global sources within a tightly controlled risk management framework, giving investors the confidence they need for the retirement they desire,” Aujla said.
