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Investec to rebrand managed distribution fund

Philip Saunders 200

Investec Asset Management is rebranding its £75m Investec Managed Distribution fund into the Investec Diversified Income fund with a new 6 per cent yield target.

Head of multi-asset Philip Saunders says the fund will be similar to the £25m Investec Diversified Growth fund, with more input from the bond team.

Saunders says: “The Managed Distribution Fund has become more global in order to generate the sort of income investors like. The yield target will go up to 6 per cent. The fund did not have an explicit target before but achieved around 4 per cent.

“Having an appropriate offering in the multi-asset income area is important. Investors’ need for yield is here to stay and we have got the right tool-kit to address that demand.”

In July, the firm announced the fund will pass from head of the contrarian team Alastair Mundy to head of fixed income John Stopford and portfolio manager Max King.

Hargreaves Lansdown investment analyst Rob Morgan says: “Investors need to be aware that a higher level of income means the managers will have to take on more risk. You would have to look at high-yield bonds and high yielding equities to get that level of income.”

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