Life Trust has introduced a new cash fund for investors in its longevity income plan in response to requests from advisers following recent stockmarket volatility.
The Life Trust Henderson liquid assets fund is a unit trust primarily investing in short-term deposits, certificates of deposit and other money market instruments in the UK.
The longevity income plan is a long-term investment specifically designed to provide a rising income the longer a policyholder lives.
The new cash fund provides safer returns for more risk-averse investors and maintains liquidity by investing in money market instruments with certain minimum short-term ratings and a duration of less than 12 months.
Life Trust says it is the first financial services firm dedicated to tackling financial issues associated with increasing longevity.
Chief executive Andy Briscoe says: “With the market volatility, IFAs have told us that some clients are looking for a safer alternative to equity investments.
“The cash fund from Henderson is a well performing and safe fund that will give peace of mind to our more risk-averse investors.”