The UK-based multi-asset investment boutique has boosted its global multi-asset offering in response to growing demand.

Heartwood Investment Management has launched two global multi-asset income funds.

As part of the Investment Association's “unclassified” sector, the CF Heartwood Income Multi Asset Fund and the CF Heartwood Income Plus Multi Asset Fund will target initial yields of 3.5 per cent and 3.9 per cent respectively.

The two income funds, which will be managed by Heartwood's existing investment team, will sit alongside Heartwood's total return solutions, which include Defensive, Cautious, Balanced and Growth strategies.

“We have been successfully managing income strategies for many years, and we are now enhancing our proposition to deliver higher sustainable levels of income in response to clients' growing demand. We see this demand based on changing retirement patterns and new pension freedoms, and global multi-asset strategies are well placed to meet this need,” said Noland Carter, head of Heartwood Investment Management.

“The level of income has been selected to balance the need to provide a meaningful, sustainable income to investors, against the need to protect assets during volatile periods in markets. The key to achieving yield and managing volatility is finding the right blend of assets, and this is where we believe the global multi-asset class approach offers access to a wider set of opportunities,” said Jaisal Pastakia, investment manager of the firm's multi-asset income range.

As of the end of June, Heartwood had over £2.4 billion ($3.6 billion) of assets under management and administration.