View more on these topics

Fidelity targets DC market with lifestyle funds

Fidelity is looking to strengthen its foothold in the defined-contribution pension market and develop a range of actively managed lifestyle funds.

The fund firm hopes to launch a number of products next year based on its existing target funds but with a longer time horizon.

Fidelity says it will consider putting forward a target fund for inclusion in the personal account regime if such funds are allowed to be marketed. A discussion paper on the personal account fund range is due out in the next couple of months.

The target funds are actively managed funds that are positioned more aggressively the further an investor is from retirement. They then move into lower-risk assets as the investor approaches retirement date.

Unlike many lifestyle funds, which use programmed trades, Richard Skelt and the multi-asset team, who oversee the funds, choose when to switch assets, so they can avoid selling equities during a market crash, for example.

Fidelity runs similar vehicles in the US and believes they would be well suited as default funds for the group personal pension market.

Head of DC business development Julian Webb says: “This is something we are actively looking at for the DC market. They are a straightforward concept but achieve a great deal. It is a one-off decision for the investor but they get active management and equity exposure.”

Recommended

FSA to assess all small firms on TCF

The FSA has announced a new programme of measures to increase its contact with small firms and to ensure they are embedding Treating Customers Fairly principles in their business practices.The aim is to encourage firms to make faster progress on TCF and to identify those firms most in need of guidance and “regulatory attention”.The FSA […]

Sore points

Generally speaking, I have always tried to steer clear of writing about payment protection insurance in this column. PPI is not a product that, traditionally, has generated much interest from IFAs, so, a bit like current accounts, there does not seem to be much point in harping on about the subject more than once or twice a year.

Broker Talkback

Do you agree with the Government that generic advice should be partfunded by the industry?Yes 12% No 88%No “I think that is something that should be funded by the FSA or the Treasury. We should not be expected to subsidise this because it dumbs down professional advice.”Leigh Johnson, Zimb Johnson Bespoke Financial PlanningNo “If the […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment