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 cycle[i]. It also uses a unique risk management overlay targeting a maximum loss of 8% over any investment period[ii]. 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."
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