Investment - Articles - LGIMs Pre-Retirement Funds break £1bn barrier

 Legal & General Investment Management has announced that its suite of Pre-Retirement Funds (PRF) has broken the £1 billion barrier in terms of assets under management.

 All three funds in the PRF stable are currently experiencing strong asset growth.

 The nominal Pre-Retirement Fund was launched back in November 2003. Since then, LGIM has launched two additional Pre-Retirement Funds: The Pre-Retirement Inflation Linked Fund and the Pre-Retirement Inflation Sensitive Fund, in November 2013 and April 2014, respectively. These two funds are designed to give UK defined contribution pension investors some protection against inflation in the run-up to retirement.LGIM’s suite of Pre-Retirement Funds has been well received amongst the UK investment community and LGIM has been awarded “Preferred Provider” status by a number of consultants. As pension funds and consultants continue to look for suitable vehicles to reduce the uncertainty of members' outcomes in the run up to retirement, the PRF suite has continued to grow, both pre and post the recent UK Budget changes.

 Marcus Mollan, LGIM’s Head of Strategic Investment & Risk Management, said:

 “The growth in LGIM’s PRF suite has continued in the wake of recent UK budget changes, which did away with the obligation on pensioners to buy an annuity upon retirement. Despite these changes, many Trustees still want a pre-retirement default option that is focused on low risk income generation, including the potential use of annuities. Consequently, we are confident that the funds will continue to prove popular with investors in the future and that we will continue to experience significant in-flows.”