Investments  

Aberdeen beefs up low-cost multi-asset offerings

Aberdeen beefs up low-cost multi-asset offerings

Aberdeen Asset Management has launched four multi-asset funds to give advisers more choice when discussing options for their clients approaching retirement.

Steven Nicholls, head of defined contribution at Aberdeen Asset Management, said: “The pension reforms are an important reminder of the need to start a pension as early as possible and to make sufficient contributions.

“These multi-asset funds have been launched to offer low-cost solutions to individuals’ retirement objectives.”

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The four funds use the synthetic risk and reward indicator targets to manage volatility and are based on a five-year track record of historical data. The offerings range from the most cautious to those willing to take more risk for a potentially higher return.

Managed by the investment solutions team, which operates an active asset allocation policy, the portfolios will be invested in a range of passive, enhanced index and actively managed funds to cater for all types of long-term investors.

Mr Nicholls said that Aberdeen Asset Management also had existing funds and investment trusts that may be suitable for the accumulation and de-cumulation investing phases.

The Four Funds:

 

IA sector

OCF (%)

AMC (%)

Aberdeen Multi Asset Conservative Fund

Unclassified

0.5

0.3

Aberdeen Multi Asset Growth 1 Fund

Mixed In 0-35% Shares

0.6

0.4

Aberdeen Multi Asset Growth 2 Fund

Mixed In 20-60% Shares

0.6

0.4

Aberdeen Multi Asset Growth 3 Fund

Mixed In 40-85% Shares

0.6

0.4

 

Adviser View

Graham Inglis, director of Glasgow-based Create and Prosper Financial Services, said: “We are looking at the sort of multi-asset offerings that Aberdeen Asset Management is providing. This is because, for many clients with smaller pots, we are conscious of costs and volatility, so there is a need in the market to use for options such as flexi-access drawdown.

“We are also conscious of the tax-free part because it is no longer part of the pension pot so cannot be passed on to beneficiaries. So unless there is a need, we are advising clients not to take it.”