Global Multi-Asset Income Fund

A defensive total return fund for today’s unpredictable markets
A defensive total return fund for today’s unpredictable markets

Defensive, when it matters

The Fund aims to provide investors with attractive, sustainable income with scope for capital growth. It’s actively managed following a defensive approach - seeking resilient assets and aiming to limit downside.

A tried and tested defensive total return strategy with a proven track record of protecting the downside in weak markets and capturing the upside in less challenging conditions

Explained:

GMAI Fund explained

We believe the best way to compound returns is to seek to reduce capital losses whilst providing upside exposure
John Stopford
Jason Borbora-Sheen

Key Highlights

01

Focus on defensive total returns, with capital preservation, over the long-term

02

Seeks to generate returns primarily from income – targeting 4-6% yield p.a. (payable monthly)

03

Aims for volatility of less than 50% of global equities1

Protecting the downside during volatility

Launched in May 2013, the Fund has a track record of providing twice as much exposure to up-markets as to down-markets.

Figure 1: Attractive upside skew versus global equities
Protecting the downside during volatility
Source: Ninety One, in USD gross of fees and taxes with income reinvested. See important information for further information.
 

Suitability and uses

    Could be used by investors seeking:
    • Defensive total return
    • Alternative source of income from conventional fixed income funds
    • Attractive sustainable income pre and post-retirement
          

1Performance and volatility targets may not necessarily be achieved, losses may be made. The amount of income may rise or fall. The yield target, whilst achieved to date since inception, is dependent upon market conditions and consequently may need to be revised. These internal parameters are subject to change not necessarily with prior notification. Global equities defined as MSCI ACWI. 

General risks
The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.

Specific Risks
Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss. Derivatives: The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise. Government securities exposure: The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Important information
All information is as at 30 June 2020 unless otherwise stated.

Figure 1: Global Multi-Asset Income Strategy average monthly gain and loss as a proportion of Global Equities average gain and loss. Global Equity returns are for MSCI AC World Index NDR, from 01 June 2013 to 31 January 2020.