Multi-asset funds favoured as post-retirement income source

PensionersMulti-asset funds could be better producers of post-retirement income than income funds, a number of institutional professionals say. Baring Asset Management surveyed 100 UK pan-European institutional professionals and found 47% backed single multi-asset income funds as being more suitable. A third (33%) said they were not more suitable in their view, and the rest answered ‘don’t know’. If people want to generate a post-retirement income over 20 years, then those who favour multi-asset funds raises to 50%. Barings, which runs a multi-asset fund, says its research highlights an institutional favourability towards income-generating multi-asset funds with more than four in five survey respondents citing charges as the most important factor when assessing the suitability of a drawdown income fund for generating a retirement income. Frequency of income was narrowly second with 83% of respondents choosing it. Sonja Laud, head of multi-asset income at Barings, says: “The research shows that retirement longevity has been identified as an opportunity for multi assets funds by institutional investors, citing post-retirement income levels and the charges.” ©2015 funds europe

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