M&G Investments launches global Multi Asset Income Fund

Written by Ray Clancy

M&G Investments is launching a global multi-asset fund that aims to deliver a high and rising income, as well as offering the potential for capital growth over the longer term.

The M&G Income Multi Asset Fund will be managed by Steven Andrew, who has been with M&G for five years. Steven has the freedom to invest directly and indirectly in equities, fixed interest and cash. He can also invest in commercial property through funds and exposure to commodities can be achieved through listed securities.

The official launch date is 11 November 2010. The fund's primary objective is to deliver an income that rises over time. At launch, the M&G Income Multi Asset Fund is targeting an initial yield of 4* per cent. It will be one of the very few funds in its peer group offering a monthly income distribution to investors.

Steven Andrew will be able to call on the wider resources and experience of M&G's investment team, which manages a total of £178 billion** across asset classes on behalf of retail, institutional and internal clients.

Steven Andrew says: "I believe the only way you can consistently and successfully deliver a growing income for investors while aiming to preserve their capital is through a multi-asset framework. This fund gives me the flexibility to scour the entire investment universe seeking out the best, sustainable income opportunities throughout any economic cycle, rather than being tied to a single asset class."
Jonathan Willcocks, Managing Director Global Sales at M&G, adds: "The need for income - and in particular, a rising income - is fast becoming a burning issue for our clients. They are increasingly aware of the necessity to ensure that their long-term income needs are met without eroding the value of their capital.

Advisers tell us that investors are looking for alternatives to deposit accounts and other conventional income products to increase and diversify their income streams. In response, we have launched the M&G Income Multi Asset Fund, a genuinely fully diversified global multi-asset fund offering investors a rising income."
Product details.

The M&G Income Multi Asset Fund is a UK OEIC, structured as a NURS with wider investment powers. Managed by Steven Andrew, the fund can invest directly in equities, fixed interest, warrants, money market instruments, deposits and cash. Exposure to these assets, and property, may also be gained through collective funds and derivatives. Exposure to commodities can be achieved through listed securities.

Minimum lump sum investment is £500 with subsequent minimum additional contributions at £10. It qualifies for inclusion in an ISA. Initial charges are 4 per cent and the annual management charge is 1.35 per cent. IFAs can receive up to 3 per cent initial commission and annual trail payments of 0.5 per cent.