Following approval by the UK regulator, London-based investment and wealth manager Cazenove Capital has confirmed the launch of its Diversity Income Fund. Managed by Marcus Brookes and Robin McDonald, the new fund will open for investment on 15 December 2010.

The fund will look to deliver capital growth in line with inflation over the medium term, with an average 4 per cent income per annum. During certain market conditions the income may fall below this level in order to preserve capital, the firm warns.

At launch Brookes and McDonald expect the asset allocation to be 45 per cent in equities, 45 per cent in fixed income and cash and 10 per cent in alternatives, investing across 13 vehicles including the M&G Optimal Income, Invesco Perpetual Tactical Bond, JOHCM UK Opportunities, M&G Global Dividend and Jupiter Absolute Return funds.