Architas has teamed up with AllianceBernstein and financial technology firm BirthStar to launch a range of target date funds aiming to tap into increased demand for pension fund options.
The range of seven Architas BirthStar Target Date funds will use AllianceBernstein managers David Hutchins and Karen Watkin choosing the portfolio investments, with Architas providing “oversight” on the funds.
Each fund has a target date, stretching from 2015 to 2050 and are designed to invest for capital growth until the target date is reached, at which point the funds will transition to lower risk assets.
The funds are designed as a “fund for life”, hoping to grow investors’ assets until they start needing to make withdrawals, assumed to be around the target date, at which point the emphasis switches to capital preservation and income.
All of the funds will be available for as little as £50 minimum investment for monthly regular investing and the ongoing charges will be capped at 0.55 per cent.
The fund range is part of a project from BirthStar, a financial technology firm that describes itself as having expertise in “investment theory, behavioural science and technology”, in which it hopes to “help make investing more straightforward without compromising on expertise”.