Legal & General Investment Management (LGIM) has unveiled a new multi-asset fund that focuses clients to and through retirement.
Known as LGIM Retirement Income Multi-Asset Fund, the fund will be run by the firm’s asset allocation team with Martin Dietz acting as lead manager on the fund.
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The fund will enable investors to drawdown from their retirement pot while the remainder will stay invested in the fund.
The fund has a target return of 3.5% over a full market cycle between five and seven years, with less than 50% of developed market equity volatility. It aims to generate long-term investment growth up to and during retirement.
The new fund will allow members to draw down money according to their preferred timeframe, subject to their individual scheme rules. It will employ the drawdown facility to reduce any disinvestment costs for its investors by focusing on cash flow management.
Dietz said: "The Budget changes earlier this year were designed to ensure retirees have more control over their money and to provide them with a wider range of income generating options upon retirement.
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By GlobalData"The launch of our Retirement Income Multi-Asset fund is in response to this change and reflects the growing demand from investors for more choice about what they do with their pensions.
"We could lock in all the cash flows up front, but that would be no different from an annuity, we are looking to be able to provide immediate cash flows through short term holdings, while at the same time taking risk in the longer term to lock in future cash flows," he added.
