Legal & General Investment Management (LGIM) has launched the LGIM Retirement Income Multi-Asset Fund.
Against a rapidly changing UK pension landscape, the fund is designed for those investors looking to draw down an income from their retirement pot, while leaving the remainder invested with the potential for future growth.
The fund represents a further expansion of LGIM’s already extensive multi-asset offering.
The LGIM Retirement Income Multi-Asset Fund will be managed by LGIM’s Asset Allocation team with Martin Dietz as lead manager. It aims to provide long-term investment growth up to and during retirement, and to facilitate the drawdown of retirement income.
The fund targets a return of the Bank of England Base Rate plus 3.5% over a full market cycle – between five and seven years – with less than 50% of developed market equity volatility.
The fund is broadly diversified across a range of asset classes and regions, and asset allocation is dynamically adjusted to take account of the changing market environment. LGIM implements its income drawdown facility through redeeming fund units with the aim of reducing any disinvestment costs for its investors through its focus on cash flow management.
Members can draw down monies according to their own preferred timeframe – subject to their individual scheme rules.
The fund’s asset allocation aims to be cost effective as it is implemented through LGIM’s award-winning index funds together with selective use of its actively managed funds.
Martin Dietz, the fund’s manager, commented: “The UK government 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.
“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.”
Emiel van den Heiligenberg – head of Asset Allocation at LGIM, added: “At LGIM, we are committed to providing innovative investment solutions that deliver improved outcomes ‘to and through retirement’.
“Clients relying on income drawdown in retirement need reliable long-term asset returns and this is exactly what the Retirement Income Multi-Asset Fund is designed to provide.”