Invesco has launched the Invesco Summit Income Fund (UK), a fund of funds targeted at UK financial advisers.
The new offering is designed to serve clients seeking reliable income streams, particularly during retirement.
It is managed by David Aujla (pictured), John Burrello, Gwilym Satchell and Alessio de Longis from Invesco’s multi-asset strategies team. They manage over £128bn in assets for clients globally.
Invesco said the fund has been launched in response to growing demand for income, particularly from clients in the decumulation stage of retirement.
The fund targets an income return of 2-3% above the Bank of England base rate over a 12-month rolling period, paid monthly. It will derive income from both natural and enhanced income sources spanning a wide range of asset classes and geographies.
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Downside risk management is another feature. Invesco said the ability to look beyond traditional defensive investments such as bonds and utilise alternative investments can help dampen volatility in times of market turbulence.
The managers will target at least 60% exposure to debt securities, cash equivalents, and money-market instruments, with up to 40% allocated to equities, related securities, and commodities through collective investment schemes and direct investments.
The income option joins the Summit Growth and Summit Responsible funds already in the range.
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Aujla said: “As more investors enter the decumulation phase of their retirement journey there is increasing demand for investment solutions which provide steady income streams in an ever-changing landscape.
“We aim to deliver dependable income from a diverse, global range of sources within a tightly controlled risk management framework, so that investors can have the confidence in retirement that they need.”
Kate Dwyer, head of UK distribution, added: “Retail advisers in the UK are increasingly outsourcing portfolio construction and we believe today’s investors need funds that are simple, transparent, diversified and cost effective. The new Invesco Summit Income Fund aims to provide clients with a regular and consistent income stream, for example during a client’s retirement drawdown, whilst minimising capital loss.”
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