The LV= diversified income fund is a lower risk multi-asset class vehicle designed to provide income with above-inflation capital growth over a three-year market cycle. The fund has an income target of 4 per cent gross per annum at launch and an expected total expense ratio of around 1.8 per cent annually.
The portfolio will be invested across a range of 10 sub-asset classes ranging from cash to fixed income, equities and commercial property. While the manager has asset allocation flexibility, each of the sub-asset classes will be represented at all times.
The new fund will be managed by Tom Caddick and Simon Brooks from the LVAM multi manager & fund selection team which oversees six other retail funds. It will be available both direct and as a pension fund variant via the LV= retirement solutions platform and is expected to sit within the IMA‘s cautious managed sector.