UBS AM launches Global Diversified Income fund

Fund will employ income smoothing mechanism

UBS Asset Management is hoping to offer a higher level of income security to investors with the launch of its Global Diversified Income fund.

The fund will target - but not guarantee - a 4.5% annual yield and through the use of a smoothing mechanism will provide a set monthly pence-per-unit income distribution for 11 months of the accounting year, with the remainder to be paid in the 12th month. UBS said: "By providing a projected level of income, and smoothing these payments over the year, the fund aims to provide clients with greater certainty of their finances, to support their essential spending within retirement." The multi-asset income portfolio will be structured as a UK-domiciled OEIC; a sub-fund of the UBS Key Sele...