Multi-Asset Income Funds: What Do the Experts Think?

There have been a slew of multi-asset income fund launches recently - targeted at the post-retirement investor. What to fund analysts think of the offerings?

Randal Goldsmith 12 February, 2016 | 9:43AM
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Randal Goldsmith: New multi-asset income fund launches. The most recent high profile one has been the Aviva AIMS Target Income Fund, just over 12 months now. It aims to return cash plus 4% as an income target to investors.

There have been others which have been launched a little bit earlier than that, funds from groups like Blackrock, Fidelity, M&G and JPMorgan. We've been looking at all of these funds, at this point in time there is not many of them that we rate, because they are a bit unproven having not been going for that long.

We do more ratings of distribution funds. They have been going a bit longer they're slightly more constrained in their asset allocation basically just equities and bonds. But that diversification across two asset classes does give considerably less volatility risk than a basic equity income fund.

One that we particularly like is the Artemis Monthly Distribution Fund. It is more globally diversified in its equities portfolio than other distribution funds. So it does have that diversification benefit of full multi-asset income fund. It's also got an excellent track record. It was the number one performing fund in the Investment Association mixed investment 20% to 60% peer group last year and over the past three years. And each of the two managers are proven in their own right on other funds which are also Morningstar rated.

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Randal Goldsmith  is a Manager Research Analyst with Morningstar.