Global Multi-Asset Income Investment Strategy

Strategy Highlights

: Flexible and global, allowing us to invest with conviction without benchmark constraints

Focus on sources of durable income, with an eye to capital growth that seeks to support real long-term return

Designed for real retirement income – stable monthly income payments, supplemented by an annual top-up to pass through all income received each year

Multidimensional proprietary research underpins our security selection

Learn more about our multidimensional investment philosophy

Strategy Profile

Objective: The strategy seeks to provide income with the potential for capital growth over the longer term by investing in a broad diversified multi-asset portfolio. The portfolio aims to yield 30% more than a reference yield comprising 60% MSCI AC World Index (equities) and 40% ICE BofA Global Broad Market Index (bonds).*
Volatility: Expected to be between that of bonds and equities over the long term.
Strategy inception: Composite inception: March 1, 2015
: * The 60% MSCI AC World index and 40% ICE BofA Global Broad Market GBP Hedged index is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the yield reference.

Investment Team

The strategy is managed by an experienced team with a wide range of backgrounds. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities help to promote better-informed investment decisions.

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Paul Flood

Head of Mixed Assets Investment

Bhavin Shah

Portfolio manager, Mixed Assets Investment team

Janice Kim

Associate Portfolio manager, Mixed Assets team

Hilary Meades

Head of Charities Investment

Simon Nichols

Portfolio manager, Global Opportunities team

Mathieu Poitrat Rachmaninoff

Portfolio manager, Mixed Assets and Charities team

Michael Spinks

Portfolio manager, Mixed Assets and Charities team

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Key Investment Risks

: Objective/Performance Risk: There is no guarantee that the strategy will achieve its objectives.

Currency Risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.

Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.

Changes in Interest Rates & Inflation Risk: Investments in bonds/money market securities are affected by interest rates and inflation trends which may negatively affect the value of the strategy.

Credit Ratings and Unrated Securities Risk: Bonds with a low credit rating or unrated bonds have a greater risk of default. These investments may negatively affect the value of the strategy.

Credit Risk: The issuer of a security held by the strategy may not pay income or repay capital to the strategy when due.

Emerging Markets Risk: Emerging Markets have additional risks due to less-developed market practices.

Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) Risk: The strategy may invest in China A shares through Stock Connect programs. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.

China Interbank Bond Market and Bond Connect risk: The strategy may invest in China interbank bond market through connection between the related Mainland and Hong Kong financial infrastructure institutions. These may be subject to regulatory changes, settlement risk and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.

CoCos Risk: Contingent Convertible Securities (CoCos) convert from debt to equity when the issuer’s capital drops below a pre-defined level. This may result in the security converting into equities at a discounted share price, the value of the security being written down, temporarily or permanently, and/or coupon payments ceasing or being deferred.

Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.

Investment in Infrastructure Companies Risk: The value of investments in Infrastructure Companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.

High Yield Companies Risk: Companies with high-dividend rates are at a greater risk of not being able to meet these payments and are more sensitive to interest rate risk.