Prism Capital Management has launched a new multi-manager fund to be run by Octopus Investments.

The IFDS Prism Distribution Fund will aim for capital growth at least in line with inflation, along with a stable dividend of around 4 per cent to 5 per cent.

The fund will blend both active and passive strategies through its Multi-manager approach and has the scope to invest across asset classes and geographical regions.

Anthony Morrow, director of Prism, commented, ‘With high inflation a serious concern for savers, many investors are seeking solutions that offer not only a regular income stream, but also capital growth that stays at least in line with inflation.

‘The fund we have launched is designed to do just that and with the multi-manager team at Octopus in charge of fund selection I am confident it will be a successful addition to our existing range of funds.’

The fund will seek out underlying investments able to deliver both steady income but also growth over time, and Prism claimed this diversification will make its yield less vulnerable to the fluctuations and volatility of any single asset class or underlying investment.

Octopus already runs three Prism funds: the £89.5 million Cautious Growth, the £77.1 million Capital Growth and the £21.3 million Advanced funds.

The minimum initial investment for the fund is £1,000 and it has an annual management charge of 1.75 per cent.

The IFDS Prism Distribution Fund is currently available through the Nucleus, Ascentric, Transact and Standard Life fund platforms.