The Architas Diversified Global Income Fund aims to provide a 5.4% gross yield together with capital growth over the medium to long term.
The retail share class is priced at 60bps annual management charge, while ongoing charges have been capped at 140bps.
The fund will invest in a mixture of active funds, tracker funds, exchange traded funds, and investment trusts across developed and emerging market equity and bonds, alternatives and cash.
It has a minimum initial investment of £500, a minimum additional investment of £10, and does not have a performance fee.
It will be managed by Architas chief investment officer, Caspar Rock.
He said the fund will focus on the income producing assets across its existing portfolios, and will focus on alternative income sources such as specialist property, social infrastructure, renewable energy and asset leasing funds.
“These assets in particular have a lower correlation to traditional equity and fixed income markets and their attractive risk return profiles make them a useful investment tool we use across our portfolios.”
The new product forms part of the company’s “wider response” to April’s pension reforms, which remove the need to purchase an annuity by allowing 100% lump sum withdrawals from a UK pension.
Cedric Bucher, head of UK funds at Architas, said he felt many people will choose income generating investments following the reforms.
“Investors, including those in retirement, who will increasingly rely on their investment income, are finding it harder to identify solutions that meet their income needs,” he said.
“In addition, a large proportion of income investors have undiversified exposure to UK equity income alone.”
