The Cazenove Diversity Income fund, which will have an income target of four per cent, will launch by the end of the year subject to FSA approval.
The fund is aiming to make up its total return with a mixture of capital appreciation and income generation, with a view to beating inflation, as measured by the CPI index. Minimum investment into the fund is £1,000, with a five per cent initial charge. It will sit in the Cautious Managed sector and be made up of around 40 per cent equities, 40 per cent fixed income and cash, and 20 per cent of alternatives.
The new fund’s investment approach will be similar to that of the Triple Crown rated Cazenove Multi Manager Diversity fund, which is run by the same pair, but with a stronger income focus.
Brookes and McDonald already head up five multimanager funds, and the Diversity fund is their best performer over a three year period, according to Financial Express data. It returned 10.4 per cent to investors at a volatility of 8.2 per cent over the period, while the IMA Cautious Managed sector it sits in returned just one per cent, and took on 10.1 per cent of risk.
Performance of Diversity fund vs sector, and Marcus Brookes vs peer group, over 3-yrs
Source: Financial Express Analytics