The UK investment house said the launch comes in response to growing investor demand for sustainable income.

Invesco Perpetual has launched the Invesco Perpetual Global Targeted Income Fund focusing on capital preservation in all market conditions.

With a target gross income of 3.5 per cent per year above the UK three-month LIBOR interest rate (before the deduction of corporation tax), the fund will aim to keep volatility to less than half that of global equities, while preserving capital over a rolling three-year period.

It will typically invest in 20 to 30 "investment ideas" at any one time, with a time horizon of two-to-three years, allowing fund managers to put together a diversified portfolio that provides exposure to the upside in financial markets, while seeking sustainable income.

Led by David Millar, head of multi-asset investment at Invesco Perpetual, the fund will be managed jointly by Richard Batty, Sebastian Mackay and Gwilym Satchell. They will be supported by the other seven members of the firm’s multi-asset team. Unconstrained by asset class and geography, the team will use a similar investment process to the existing £7.3 million ($9 million) Invesco Perpetual Global Targeted Returns Fund. According to Trustnet, that fund delivered a cumulative performance of 2.3 per cent over the last year, compared to sector average returns of 0.6 per cent.

“Conversations with our clients have highlighted a clear and growing need for sustainable income due to a challenging macroeconomic climate and an ever-lengthening retirement period. In today’s low yield environment, multi-asset investing helps investors spread the overall risk taken while providing the opportunity for more stable returns compared to investing in just one asset class,” said Millar.