The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Invesco
Global asset manager Invesco has just launched the Invesco Summit Income Fund (UK), which is designed to help UK financial advisors meet the needs of clients seeking reliable income streams, particularly during retirement.

The fund has been launched in response to growing demand for income particularly from clients in the decumulation stage of retirement, the firm said in a statement. It targets an income return of 2 to 3 per cent 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 range of asset classes and geographies. The fund aims to provide a regular and consistent income stream, supporting investors during the phase of their retirement when they want to draw a regular income form their retirement pot, the firm added.

In addition to income, downside risk management is another key feature of the fund. The ability to look beyond traditional defensive investments such as bonds and use alternative investments can help dampen volatility especially in times of market turbulence.

Targeting at least 60 per cent exposure to debt securities, cash equivalents, and money-market instruments, with up to 40 per cent allocated to equities, related securities, and commodities through collective investment schemes and direct investments, the fund aims to meet income targets while managing risk.

The fund is managed by David Aujla, John Burrello, Gwilym Satchell and Alessio de Longis, members of Invesco’s multi asset strategies team, who manage over £128 billion in assets for clients globally.

It builds on and complements the Summit Growth and Summit Responsible fund ranges by adding an income solution to the existing range of risk-targeted funds, the firm said. The Summit Responsible Range includes five risk-targeted global multi-asset funds, focused on responsible investing and ESG considerations.

The fund launch follows Invesco’s recently announced strategic partnership with retirement specialist Just Group, which will bring together Invesco’s model portfolio service and Just’s guaranteed income producing asset, delivered through its Secure Lifetime Income solution, to develop a flexible new retirement proposition for advisors.

"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,” Aujla said.