Investment - Articles - Institutional investors back Multi Asset Funds

 The research, which canvassed the views of 100 UK pan-European institutional professionals, revealed an institutional favourability towards multi asset funds as an investment sector. Indeed half (50%) of institutional investors believe that multi-asset funds are the most suitable for people post retirement looking to generate an income over a 20-year retirement period.

 Barings’ research highlighted an institutional favourability towards income generating multi asset funds with more than four in five (84%) citing charges as the most important factor when assessing the suitability of a drawdown retirement income fund for generating a retirement income for people post-retirement. Frequency of income was narrowly second with 83% of respondents choosing it.

 Sonja Laud, Head of Multi Asset Income at Barings, said, “Institutional investors have identified multi asset funds as the most suitable for generating income for people post retirement. The research shows that retirement longevity has been identified as an opportunity for multi assets funds by institutional investors, citing post retirement income levels and the charges.

 “The Baring Multi Asset Income Fund will be managed with the aim of preserving capital through our strong multi asset skillset. Unlike many income funds, a unique feature of this fund will be monthly income payments with a high income target. Barings has been running multi asset portfolios for many years and has been at the forefront of multi asset investing and innovation to create solutions to suit a variety of client needs.”

 The Baring Multi Asset Income Fund can have a maximum investment in equities of 60% of the portfolio, 80% in fixed income, up to 30% allocation to property, 25% in cash and a maximum 30% in alternatives. It will be included in the IMA Mixed Investment 20-60% Shares sector.