HSBC Global Asset Management has launched a retirement savings range for the defined contribution pensions market, in response to the pension reforms which are set to be implemented next month.
The bank’s fund management arm said the new retirement range would sit within its multi-asset ‘world selection’ multi-asset portfolios, and follows similar launches by a number of other asset management groups.
The retirement range consists of three risk-rated portfolios - ‘cautious’, ‘balanced’ and ‘dynamic’ - and has an annual management charge of 0.25 per cent for each portfolio. Ongoing charges will vary depending on the asset mix but are targeted between 0.46 per cent and 0.53 per cent.
HSBC said it believes that since the Budget, DC schemes are reassessing their default funds and increasingly looking to provide solutions that are more tailored for their members.
‘World selection’ first launched in 2009 and had assets under management of £7.7bn at December 2014.
Stuart White, head of institutional, UK for HSBC GAM said: “In response to the chancellor of the Exchequer’s ‘Freedom and choice in pensions’ announcement in last year’s Budget, we are introducing our retirement range of risk-managed funds aimed at the needs of DC scheme members building up their investments as they plan for their retirement.
“We believe the range is simple, good value for money and easily adaptable to suit the needs of different individual members.”
The launch of the new retirement range follows analysis recently which showed that the Retail Distribution Review has “dramatically impacted” the multi-asset market.
ruth.gillbe@ft.com
