F&C Investments is considering launching a suite of risk-targeted multi-asset products in a bid to establish itself in the new world of pension freedoms.
The group is represented in the multi-asset space already, offering funds from high-profile multi-managers Gary Potter and Rob Burdett. But head of UK retail sales Rob Thorpe said further development of its product range would be needed due to the changing market.
He said a range with specific risk targets may be needed to compete with the new pensions landscape created by George Osborne, who, in last year’s Budget, effectively removed the stipulation for retirees to buy annuities.
This move by the chancellor means asset managers are scrambling to create products that can serve as effective substitutes to annuities and many fund houses view the best solution as a multi-asset range that targets specific levels of risk relative to equities.
Mr Thorpe said these new products would have “flexible options that suit our clients’ goals and needs”.
There will also be a “risk discussion” around the products and they will “take into account things such as exposure to volatility”.
Elsewhere, to satisfy investors searching for income, F&C said it was also planning to bring the £2.2bn Pyrford Global Total Return fund, which is run by its parent company BMO Global Asset Management, to the UK retail market.
