Schroders launch the Flexible Retirement Fund ahead of ‘pensions freedom day’
Schroders responds directly to the government pension changes with the launch of a unique pre-retirement solution.
Schroders today responds directly to the government pension changes with the launch of a unique pre-retirement solution. Schroders Flexible Retirement Fund, available from today, will allow pension scheme members the flexibility to take their pension pot as a lump sum, to purchase an annuity or to drawdown over a period of time, depending on their specific individual circumstances.
The Multi-asset solution aims to generate CPI +2% over the business cyclei . It also uses a unique risk management overlay targeting a maximum loss of 8% over any investment periodii. The portfolio will be made up of a range of asset classes and benefits from active asset allocation, by Schroders industry leading Multi-asset team.
Tim Horne, Defined Contribution Investment Solutions Manager, Schroders commented:
“The pensions landscape in the UK will change fundamentally on April 6 2015 with the introduction of pensions freedom. We have produced a truly unique strategy for our clients - Schroders Flexible Retirement Fund – targeting a return above inflation and a maximum loss over any investment period, to give individuals the freedom to make the most of their pension pot.
By engaging the skills of our active multi-asset fund managers and a unique loss management process, it will allow defined contribution members to take full advantage of the new freedom being afforded to them upon retirement.”
John McLaughlin, Head of Investment Solutions, Multi-asset & Portfolio Solutions (MAPS) commented:
“To achieve the objectives of the Flexible Retirement Fund, we have combined the latest investment thinking of both our multi-asset investors and our risk management specialists. The result is a unique yet cost effective investment strategy specifically tailored to meet the needs of those approaching retirement - and which could indeed continue to be appropriate for many individuals well into their golden years."
i CPI, Consumer Price Index. Typical business cycle is between three to five years
ii The maximum loss target is an investment objective only and does not constitute a guarantee. It is possible that due to prolonged adverse market environments the Fund may lose more than 8%.
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Schroders is a global asset management company with £276.2 billion (EUR354.4 billion/$447.7 billion) under management as at 30 September 2014. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
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