Investment approaches
global multi-asset income
A fully flexible multi-asset strategy, aiming to source the best income-producing opportunities across asset classes and the capital structure
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Flexible, global approach, allowing us to invest without any sector, country or asset class constraints
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Focus on sustainable income, with an eye to capital growth
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Stable monthly income payments
Our philosophy and process
- A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities. ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.
- The strategy invests in a diversified range of assets, from equities and bonds to alternative assets. Income is set at portfolio level, allowing the manager to determine where best to achieve income and where to seek capital growth.
Every time we consider a security or look at an industry or country, it’s in the context of what’s happening across the world. We believe the investment landscape is shaped over the long term by some key trends, and we use a range of global investment themes to capture these.
China influence
The influence of China on the world has grown exponentially but its economy looks increasingly risky. ‘China influence’ looks at how the country’s development affects the investment outlook beyond its borders.1
1 Compared to more established economies, the value of investments in emerging markets may be subject to greater volatility owing to differences in generally accepted accounting principles or from economic or political instability or less developed market practices.
State intervention
Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.
Financialization
Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialization’ investigates the implications of finance dominating economic activity, instead of serving it.
Consumer power
Technological advances are increasingly shifting the power to consumers in the marketplace. With the ability to compare prices and products independently now in the hands of the consumer, businesses must adapt to a changing commerce landscape, as their customers seek out better experiences, authenticity and value. Our ‘consumer power’ theme addresses these trends.
Investment team
Our Global Multi-Asset Income strategy is managed by an experienced team. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.
- 26
- years' average investment experience
- 15
- years' average investment experience
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Paul Flood
Portfolio manager, multi-asset team
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Bhavin Shah
Portfolio manager, multi-asset team
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Freeman Le Page
Investment specialist and SRI client director
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Charles French
Deputy chief investment officer
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Oliver Larminie
Portfolio manager, charities and specialist institutions
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Joo Hee Lee
Multi-Asset Solutions manager
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Hilary Meades
Portfolio manager, Multi-Asset team
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Simon Nichols
Portfolio manager, UK equities
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Rob Stewart
Head of responsible investment research
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Tim Wilson
Head of global strategy
Strategy profile
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Objective
- To provide income with the potential for capital growth over the longer term by investing in a broad diversified multi-asset portfolio
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Performance aim
- Aims to yield 30% more than a reference yield comprising 60% MSCI AC World Index (equities) and 40% hedged BofA Merrill Lynch Global Broad Market Index (bonds)
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Volatility
- Expected to be between that of bonds and equities over the long term
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Strategy size
- $0.7bn (as at June 30, 2019)
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Strategy inception
- Composite inception: March 1, 2015
Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
Key investment risks
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- There is no guarantee that the strategy will achieve its objective.
- This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
- The strategy will use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
- Investments in bonds are affected by interest rates and inflation trends which may affect the value of the strategy.
- The strategy holds bonds with a low credit rating that have a greater risk of default. These investments may affect the value of the strategy.
- The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
- The strategy may invest in investments that are not traded regularly and are therefore subject to greater fluctuations in price.
- The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.