Architas is looking at expanding its multi-asset income fund range.
The firm currently has four income funds. The risk-profiled funds are the £130m Architas MA Active Intermediate Income fund and £67m Architas MA Active Moderate Income fund and outside these are the £135m Architas MM Monthly High Income and £45m Architas MM Strategic Bond.
Head of business development Cedric Bucher says: “We should have more funds in the multi-asset income fund space. I would like to explore new ways to generate income. This is what our research is currently focused on at the moment.”
Other groups to launch similar income funds is Old Mutual which is launching four funds that will target a specific level of capital growth and a level of income towards the end of the month.
Whitechurch Securities head of research Ben Willis says: “Income has become key focus due to the low interest rate and low growth environment, combined with the prospect of rising inflation.”
Investors are having to take on more risk and look to other asset classes for their income needs as cash deposits are uninspiring with such low rates and with gilt yields at historical lows.”
Several leading fund groups have launched a range of multi-asset funds to capture assets post-RDR. In my view, and given the current environment, multi-asset income funds will be in demand.”
Rowan Dartington head of collectives research Tim Cockerill says: “I think a multi-asset approach for income is sound but as always I would need to see what they would include.
Traditionall,y bonds are a key part of this type of strategy so I imagine they will be included but with yields as low as they are and upside potential limited growth for this type of strategy may be curtailed.”