Kames Capital considers multi-asset income fund

Kames Capital is considering launching a multi-asset income fund to capitalise on the trend of investors seeking income.

The firm currently has a number of single-asset funds that pay an income, including six bond funds in the UK Oeic range, the £232.3m ethical equity fund, £362.9m UK equity fund and £350m healthcare property trust.

Head of retail Steve Kenny believes income will be one of the biggest investment trends in the coming years.

He says: “It is the demographics of society that will make income products popular. More people are retiring and looking to draw an income and more investors are questioning the value of annuities.

“The product would be fettered, investing in funds the firm runs. We have confidence in our capabilities in-house.”

Hargreaves Lansdown senior analyst Meera Patel says: “Asset managers are looking at multi-asset strategies for income products to try to get to the magic yield number of 4 or 5 per cent because income is hard to come by, with interest rates and government bond yields so low. However, I am concerned this might be the next bandwagon.”