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F&C offers alternative to 'limited' pensions
3 September 2007 12:54
F&C has launched a new pensions product that it claims will offer far better value for saver's money than existing defined contribution (DC) schemes.
According to the asset management group, very few DC product providers have taken account of the widening investment opportunities on offer over recent years and continue to utilise only a limited range of asset types.
By contrast, F&C's new diversified growth fund will invest savers' money in 12 different asset classes, with no more than ten per cent of each portfolio being poured into one single asset and alternative assets accounting for 50 per cent of total investment.
It believes that this will provide savers with a scale of diversity not realised by other multi-asset products and that the result will be returns equivalent to those offered by equity markets over a five-year period, but without the same volatility.
Head of asset allocation Paul Niven claimed that too few accounts currently on the market offer genuine diversity, which he deemed to be a key value in the composure of any pension product and one that F&C has adhered to in creating this new fund.
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