Invesco, one of the world’s leading asset managers, today announces the launch of the Invesco Summit Income Fund (UK), a fund of funds designed to help UK financial advisers meet the evolving 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. It targets an income return of 2-3% above the Bank of England Base Rate over a 12-month rolling period paid monthly.
The Fund will derive income from both natural and enhanced income sources spanning a wide range of asset classes and geographies. It 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.
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 utilise alternative investments can help dampen volatility especially in times of market turbulence.
The Fund’s approach involves careful selection of both active and passive strategies, backed by robust research. Targeting at least 60% exposure to debt securities, cash equivalents, and money-market instruments, with up to 40% allocated to equities, related securities, and commodities through collective investment schemes and direct investments, the Fund aims to meet income targets while managing risk effectively.
The Fund is managed by David Aujla, John Burrello, Gwilym Satchell and Alessio de Longis from Invesco’s Multi Asset Strategies team, who manage over £128bn in assets for clients globally. The team is also supported by over 800 investment professionals worldwide.
The Summit Income Fund 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 Summit Responsible Range includes five risk-targeted global multi-asset funds with a dedicated focus 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 advisers.
David Aujla, Fund Manager comments: “As more investors enter the decumulation phase of their retirement journey there is increasing demand for investment solutions which provide steady income streams in an ever-changing landscape. 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.”
He continues: “The Invesco Summit Income Fund (UK) is the latest addition to our well-established Summit multi asset franchise, which already includes our Summit Growth and Summit Responsible ranges. We believe that its focus on delivering regular income in a variety of income environments, while limiting drawdowns, is a compelling proposition for investors – particularly those closer to retirement.”
Kate Dwyer, Head of UK Distribution, says: “Retail advisers in the UK are increasingly outsourcing portfolio construction and we believe today’s investors need funds that are simple, transparent, diversified and cost effective. The new Invesco Summit Income Fund (UK) aims to provide clients with a regular and consistent income stream, for example during a client’s retirement drawdown, whilst minimising capital loss.”
