F&C launches annuity-matching funds

Calculating_feesF&C has launched two annuity-matching funds for defined contribution pension schemes, run by the firm's liability-driven investment (LDI) team. The funds are designed to reduce the conversion risk – the risk that annuity benefits will fall in value due to changing interest rates – as scheme members buy level or index-linked annuities. “Current annuity protection solutions do not work, with most pre-retirement funds in the market today doing a poor job of managing conversion risk,” said Julian Lyne, head of global consultants and UK institutional business at F&C. “We believe our market leading funds bring the very latest investment thinking to help DC members manage their risk as they near retirement, and offer increased certainty around delivering income in retirement.” F&C claims the F&C Fixed Annuity Conversion Fund and F&C Inflation-Linked Annuity Conversion Fund are the first products of their kind to be offered to UK pension schemes. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.