Aberdeen Asset Management, a FTSE 100 company, has launched four low-cost multi-asset funds for UK individual pension investors that use a mix of active, enhanced index, and passive management.
Aberdeen’s investment solutions team will actively manage strategic and tactical allocations within the funds, which the company says are suitable for all types of long-term investing regimes depending on risk tolerance. Aberdeen says this suitability also includes being an alternative to a retirement annuity, which UK defined contribution retirees no longer have to buy under new rules.
The funds’ risk ratings range from the least risky, rated at 2, up to 5. The rating system used is the synthetic risk and reward indicator, which is officially approved by regulators and used in key investor information documents for Ucits funds. The ratings run from 1 to 7 and are based on the volatility of returns over the previous five years.
In order of risk (lowest first), the funds are: the Aberdeen Multi Asset Conservative Fund; the Aberdeen Multi Asset Growth 1; the Aberdeen Multi Asset Growth 2; and the Aberdeen Multi Asset Growth 3 funds.
The fund range is launched in the wake of UK pension reforms on April 6, which provide people with more flexibility about how to use their pension pots at retirement.
Steven Nicholls (pictured), head of defined contribution at Aberdeen, says: “These four multi-asset funds have been launched to offer low-cost solutions to individuals’ retirement objectives.”
Vanguard Asset Management, which emphasises low-cost funds in its strategy, said this week that a new generation of DC pensions is emerging, leading to lower-cost offerings.
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