Threadneedle fund aims to benefit from pension reforms

LaunchThreadneedle Investments has launched a global multi-asset and income fund in response to recent pension reforms in the UK.

The UK budget this year scrapped the requirement for retirees in defined contribution pension schemes to buy an annuity.

Toby Nangle, head of multi-asset allocation, says individuals and the industry are still “coming to terms” with the long-term implications of the government’s pension reforms.

“Where people choose not to purchase an annuity, their pension savings will need to generate a significant investment return in order to see them through retirement,” he adds.

Nangle, who will manage the new Threadneedle Global Multi Asset Income Fund, says he will adopt a long-only, unleveraged investment approach and invest across equities, bonds, cash and property.

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