BARINGS EXPANDS MULTI ASSET RANGE WITH THE LAUNCH OF THE BARING MULTI ASSET INCOME FUND

 

The Baring Multi Asset Income Fund has been designed to be suitable for investors who want access to a sustainable source of income for a variety of needs

The fund can have a maximum investment in equities of 65% of the portfolio, and will be included in the IMA Mixed Investment 20-60% Shares sector

Demand for income generation is increasing, sees Barings, particularly in the wake of the regulatory changes which took effect in April 2015

 

London: 10 August 2015 –Baring Asset Management (“Barings”), the international investment firm, today confirmed the launch of the Baring Multi Asset Income Fund1. The fund, which became available on 29th July, is suitable for investors who are looking for a retirement income solution which combines sustainable income generation across multiple sources of income, along with rigorous risk management. The investment objective of the fund is to generate income as well as potential for medium-to long-term capital growth. The fund is targeting an indicative annual yield of 5%, with monthly distribution2.

 

The Baring Multi Asset Income Fund utilises a dynamic approach to investing, which emphasises diversification across multiple sources of income, and dynamic asset allocation to deliver the sustainable monthly income payments required by investors. The dynamic asset allocation process is complemented by a rigorous securities selection process in order to find the most suitable securities that provide attractive and sustainable levels of income.

 

Sonja Laud, Head of Multi Asset Income at Barings, said, “The fund will be managed with the aim of preserving capital through our strong multi asset skillset. Unlike many income funds, a unique feature of this fund will be monthly income payments with a high income target. Barings has been running multi asset portfolios for many years and has been at the forefront of multi asset investing and innovation to create solutions to suit a variety of client needs.”

 

The Baring Multi Asset Income Fund can have a maximum investment in equities of 65% of the portfolio, 80% in fixed income, up to 30% allocation to property, 25% in cash and a maximum 30% in alternatives. It will be included in the IMA Mixed Investment 20-60% Shares sector.

 

Sonja Laud continued, “As income from traditional sources is under pressure, investors need to accept higher levels of risk for the same level of income in single asset class funds. This is why we will tactically adapt and diversify the asset allocation of the portfolio, aiming to gain exposure to rising asset classes in order to capture growth, and limit exposure to falling asset classes in order to protect capital, while opportunistically exploiting income opportunities when and where they arise.

 

“All round the world, demand for income is growing. People are living longer, and regulatory changes, such as those which took effect in the UK in April 2015, give individuals greater freedom to decide what to do with their defined contribution pension fund. Yet the investment environment is uncertain. For many investors, the question is where to find a retirement income solution which combines sustainable income generation with rigorous risk management.We believe multi asset income investing is the investment proposition which answers that question.”

 

1: UK authorised unit trust UCITS

2: The distribution share class of the fund aims to pay a distribution on a monthly basis. Distribution is not guaranteed and is subject to fund manager’s discretion

 

Albion Community Power secures £10m from Greater Manchester Pension Fund as it announces latest energy project

 

Greater Manchester Pension Fund joins UK Green Investment Bank plc and Strathclyde Pension Fund in committing capital to Albion Community Power plc

ACP has now raised £70m of a targeted £100m to fund community-scale renewable energy projects

ACP also announces the £3.3m funding of its second hydro-electric scheme in the Scottish Highlands

The River Arkaig project will generate electricity for use in the local network

 

A commitment of £10m today sees Greater Manchester Pension Fund (GMPF) join the UK Green Investment Bank plc (GIB) and Strathclyde Pension Fund (SPF) as investors UK community-scale renewable energy projects through Albion Community Power plc (ACP).

 

ACP builds, controls and operates community-scale renewable projects across the UK. It is one of the largest single sources of equity funding available for projects in the sector.

 

GIB and SPF committed £50m and £10m respectively to ACP earlier this year. GMPF’s investment amounts to a quarter of the further capital ACP aims to raise from additional co-investors as it builds a £100m pot of funding for small-scale projects.

 

ACP marked the occasion by announcing details of its latest project, a 499 kW hydropower scheme located on the River Arkaig in Lochaber in the Scottish Highlands.

 

The £3.3m scheme, located on the Achnacarry estate, will generate approximately 2.3 GWh of renewable electricity per year. This is equivalent to the electricity consumption of around 550 homes. It will be constructed in conjunction with Green Highland Renewables and completion is expected in February 2016.

 

Water will be diverted from the river down a 6 metre drop using a weir. This will turn two 250 kW Archimedes’ screws to generate power, before returning to the river downstream.

 

This latest investment typifies ACP’s objective of creating a portfolio of small, decentralised renewable generation projects closer to the sources of demand. The River Arkaig project will be directly connected to distribution networks and, by its local nature, will help contribute to a reduction in transmission and distribution losses in addition to a reduction in greenhouse gas emissions.

 

Volker Beckers, Chair of Albion Community Power, said:

 

“We are delighted to welcome the Greater Manchester Pension Fund as a new investor in ACP. It is a clear reflection of the growing institutional demand for access to high-quality community-scale renewable energy projects as they have a proven track record of generating strong and stable returns for investors.”

 

Councillor Kieran Quinn, Chair of Greater Manchester Pension Fund, said:

 

“We are excited to be joining GIB and Strathclyde Pension Fund as investors in ACP and we look forward to supporting the continued expansion of community-scale renewable energy schemes across the UK. ACP will play a key role in this regard as the pressure to diversify beyond carbon-based energy sources becomes even greater.”

 

Shaun Kingsbury, Chief Executive of the UK Green Investment Bank, said:

 

“It is great to see Greater Manchester Pension Fund join the family of ACP investors. Arkaig is a reminder of the important role community-scale renewables projects will play in securing clean, green and affordable sources of energy for future generations. The fact that yet another of the UK’s largest institutional investors has given its backing to ACP is testament to the efficiency and reliability of such schemes and the excellent work ACP is doing to highlight their benefits.”

 

Councillor Paul Rooney, Chair of Strathclyde Pension Fund, said:

 

“Our first priority is always to ensure our members’ financial futures are secure; but to do that while supporting infrastructure, jobs and innovation in the communities where we live and work is something Strathclyde is proud to be at the forefront of in the UK.

 

“There is clearly a strong and growing appetite among forward-thinking pension funds to diversify their portfolios into this exciting sector. Manchester is one of those funds, so it is no surprise to be working with them and the Green Investment Bank to provide funding for innovative, community-focused infrastructure.”

 

ACP has agreed to sell 50% per cent of its electricity to directly local users through private wire arrangements, but is engaging with industry to investigate the option of selling more of the generated power straight to end customers.

 

 

INSTITUTIONAL INVESTORS PREDICT ALTERNATIVE FINANCE MARKET WILL GROW BY 23% OVER TWO YEARS

 

·         73% of investors predicting greater institutional exposure to the alternative finance market

·         74% believe that growth of alternative non-bank finance could increase the resilience of the financial system

·         64% say that UK and European SMEs are too reliant on traditional bank finance

 

Three quarters (73%) of institutional investors predict that there will be a growing institutional appetite for investing in the alternative finance market over the next two years as the sector will continue to offer attractive risk-adjusted returns , according to a new study by Amicus Finance Plc (“Amicus”), a leading specialist in short term lending solutions.

 

The research among European institutional investors reveals that they expect the alternative lending sector to grow by a quarter (23%) over the next 24 months, driven by the demand for expansion finance by SMEs.    

 

According to the study, almost three-quarters (74%) of institutional investors believe that growth of alternative non-bank finance could increase the resilience of the financial system by lessening the burden on banks.  Indeed, almost two-thirds (64%) believe that UK and European small businesses are too reliant on traditional bank finance. 

 

John Jenkins, CEO of Amicus commented: “As the economy continues to recover, institutional investors see a strong opportunity for the capital markets to play a bigger role in financing SMEs, which continue to face capital constraints due to bank deleveraging. 

 

“Institutions increasingly recognise they can generate attractive returns through investing in alternative finance without taking on large risks.  We are seeing a high level of interest from investors looking for exposure to our short term bridging loans secured against UK residential and commercial property.”

 

Alternative finance includes crowdsourcing finance, peer-to-peer lending cashflow/invoice finance, property finance such as bridging loans and commercial mortgages or asset finance such as machinery and business equipment.

 

Amicus offers short term, property-based lending solutions to private and corporate borrowers which include landlords, developers and owner-occupiers.