The London-based investment manager has expanded its multi-asset offering to meet demand arising from British pension freedoms, which came into force this April.

The UK's Baring Asset Management has launched a UCITS multi-asset fund to target investors looking for retirement income following the recent British pensions reform.

The Baring Multi Asset Income Fund, aimed at income generation as well as potential for medium- to long-term capital growth, focuses on diversification across multiple sources of income, and dynamic asset allocation to deliver monthly income payments to investors.

With a targeted annual yield of 5 per cent, the fund will hold a maximum investment in equities of 65 per cent of the portfolio, 80 per cent in fixed income, up to 30 per cent in property, 25 per cent in cash and a maximum 30 per cent in alternatives. It will be included in the IMA mixed investment 20-60 per cent shares sector.

“All round the world, demand for income is growing. People are living longer, and regulatory changes, such as those which took effect in the UK in April 2015, give individuals greater freedom to decide what to do with their defined contribution pension fund,” said Barings' head of multi asset income, Sonja Laud.

“Yet the investment environment is uncertain. For many investors, the question is where to find a retirement income solution which combines sustainable income generation with rigorous risk management. We believe multi asset income investing is the investment proposition which answers that question.” 

Barings has been busy boosting its multi-asset capabilities, most recently with the hires of James Ind and Merrick Styles.