Kames Capital is to launch the Diversified Income fund designed to offer an attractive yield for an ageing population.
Managed by Vincent McEntegart from the multi-asset team invests in investment grade bonds, high yield bonds, global equity income, UK equity income and alternatives through its own fund ranage.
Launching this week, the fund aims to provide 'competitive and sustainable income over the medium term' with a monthly income distribution and has a yield target of 5%.
The initial asset allocation is 21% to high yield bonds, 19% to investment grade bonds, 23% to global equity income, 14% to UK equity income, 22% in alternatives and 1% in cash.
'With many of the post-war baby boomers now approaching or having reached retirement coupled with the increase in life expectancy there has never been a greater need for a diversified income approach to supplement people’s retirement,' Kames chief executive Martin Davis (pictured) said.
'This fund pulls together our key asset classes to create a solution for those seeking a competitive income either now or in the future.’