Invesco has launched a retirement-income focused fund of funds within its Summit range.

The Invesco Summit Income Fund has been created in response to growing demand for income from clients in decumulation, the firm says.

This strategy will target an income return of 2-3% above the Bank of England base rate on a 12-month rolling period, paid monthly.

The Invesco Summit Income Fund will have an OCF on its platform share classes of 0.45%.

This strategy is fettered and only able to invest in Invesco funds and ETFs but is able to allocate to both active and passive strategies.

A minimum 60% allocation to debt securities, cash equivalents and money-market instruments will be targeted with equities, related securities and commodities making up the rest.

It will be overseen by managers David Aujla, John Burrello, Gwilym Satchell and Alesso de Longis from Invesco’s multi asset team.

Mr Aujla said: “As more investors enter the decumulation phase of their retirement journey there is increasing demand for investment solutions which provide steady income streams in an ever-changing landscape.” 

“We aim to deliver dependable income from a diverse, global range of sources within a tightly controlled risk management framework, so that investors can have the confidence in retirement that they need.”

This fund joins the Summit Growth and Summit Responsible fund ranges. Both ranges include five strategies, with combined AUMs of £58.7m and £161.9m respectively.

This launch follows the recent partnership Invesco signed with retirement specialist Just Group, which combines the asset manager’s model portfolio service and the specialist’s guaranteed income producing asset. Unveiled earlier in June, this retirement solution is designed to sit within a SIPP.