Old Mutual Global Investors has been forced to scale back ambitions for its flagship retirement multi-asset product range after potential buyers gave the cold shoulder to two of its products.
The City-based asset house is part of Old Mutual Wealth, which also operates the giant fund platform formerly known as Skandia. It has embarked on an expansion programme in recent years, which has included the appointment of high-profile fund managers.
As part of its growth plans, the group gained regulatory approval to launch a range of six inflation-busting funds called Generation in late 2012, but market research has since highlighted a lack of potential demand for two products.
John Ventre, head of multi-asset, said the two shelved funds were aimed at the high-risk-tolerance end of the market, but few retirees – the main targets for those funds – would demand such a product.
“We remain open to launching them should that demand materialise, but we don’t expect it to,” he said.
However, he added that the firm was hopeful that once the pensions overhaul announced in last year’s Budget goes live in April, there would be more interest for the range.
The current series of products has raised £72.7m since launch two years ago.
The products that have not been launched were designed to outperform the UK’s consumer prices index of inflation by 5 per cent a year, while also delivering income levels of 4-6 per cent.
Mr Ventre added that for the time being “the current range suits the market needs”.