Cazenove is considering launching a global equity income fund as part of plans to grow the firm’s range of income-producing funds.
Speaking to Money Marketing, managing director of investment funds Robin Minter-Kemp says: “Growing our income products is important to us. Returns are going to be hard to come by and we have to offer funds that grow income and capital. There is a growing demand for this type of thinking. We will possibly consider a global equity income fund.”
The Cazenove diversity income fund, which was launched last December, has an average income target of 4 per cent a year. The firm also has a UK equity income and UK growth & income fund.
Minter-Kemp predicts that growth will be “anaemic” in the long term. He says: “Investors are used to getting a double-digit return from commodities but they are going to have to be satisfied with long-term averages of a four to five per cent return rather than 10 to 15 per cent a year.”
Evolve Financial Planning director Jason Witcombe says: “People are living for longer so there will be more demand for income products.”