Global Multi-Asset Income Strategy

A defensive total return strategy that seeks to deliver consistent returns with limited drawdowns.

Strategy overview

The objective of the strategy is to deliver a defensive total return with income used as the engine, delivered with volatility less than half of equities. A bottom-up process is applied to select securities from a broad multi-asset opportunity set, with the focus on yield, income resilience and capital upside. There is a strong emphasis on downside mitigation.

Key Features
  • A defensive return portfolio aiming for attractive income with capital growth over the long term
  • Bond like volatility targeting less than half the volatility of equities over time
  • Focus on limiting downside risks
  • Resilient portfolio built from the bottom-up and directly invested in a range of income-producing assets
  • Managed by team with specialist experience, accountability and long-term tenure
We invest across the multi-asset universe, focusing on selecting resilient securities from a bottom-up perspective, using income as the anchor of the strategy’s defensive total return.
John Stopford
Jason Borbora-Sheen

Strategy highlights

01

The strategy applies a bottom-up approach. We aim for defensive total returns where the primary source of return is income, which historically has proved a more sustainable form of return.

02

We take a proprietary approach to risk management through categorising assets as Growth, Defensive or Uncorrelated and actively use hedging to seek to limit downside risk.

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General risks

Past performance is not a reliable indicator of future results and performance targets may not 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.Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.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.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 31 July 2021 unless otherwise stated.

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