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MAM to launch multi-asset fund offering 4% yield

MAM Funds is setting up an income multi-asset fund for managers James Sullivan and Martin Gray on May 4.

The Dublin-domiciled Miton global diversified income fund will aim for an annual target yield of 4 per cent. Around two-thirds of the fund will be inves-ted in open-ended and close-ended funds. The rest of the exposure will be made up of direct equities and direct bonds.

The asset allocation at launch is expected to be 37 per cent in bonds, 31 per in equities, 10 per cent in property, 10 per cent in infrastructure, 6 per cent in convertibles and 6 per cent in cash.

The portfolio will have bet-ween 25 and 35 holdings and the fund is expected to sit in the mixed investment 40 per cent to 85 per cent shares sector.
Initial charge is 5 per cent for retail investors and annual charge is 1.5 per cent. Minimum investment is £1,000.

Sullivan and Gray run the £775.5m Miton special situations portfolio, £221m Miton strategic portfolio and the £18m Miton Arcturus fund.

Gray says there is investor demand for income, especially in a low-growth environment.

Bestinvest senior investment adviser Adrian Lowcock says: “Investors are investing more in income funds and UK investors are looking to diversify their income by investing globally.”

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