Canada Life has unveiled what it says are five new, low cost life and pension funds that complement its active range, and represent its first-ever large-scale “push” into the passive funds sector.
In a statement, the UK investment products arm of Canada’s Great-West Lifeco Inc said it was launching the Canlife Passive Portfolio funds of funds with low Ongoing Charges Figures (OCF) of between 0.20% and 0.24%.
Alongside these, it said, it is also launching 11 new links to single strategy passive iShares funds, with OCFs of between 0.06% and 0.22%. IShares are BlackRock’s exchange-traded funds (ETFs).
The five Canlife Passive Portfolios are made up of the 11 iShares funds, plus Canada Life’s own money and property funds. According to Canada Life, they will remain within a specific risk band by following the asset allocation format in the risk profile range three through seven, of the so-called Digital Planner digital risk profiling and financial planning system.
“The new portfolio funds implement their asset allocation primarily though the passive iShares tracker funds, managed by BlackRock Investment Management, covering UK and international equities and bonds,” Canada Life said, in a statement unveiling its new range.
That its five Passive Portfolio funds have been classified as “Risk Target Managed” products by Dynamic Planner, it added, should reassure advisers “that the funds are well-diversified, and that expected volatility and strategic asset allocations will stay within the boundaries assigned to each Dynamic Planner risk profile”.
“Together this enables the funds to help meet the challenge of ensuring ongoing suitability,” the statement continued.
The new funds are being made available through Canada Life’s Pension Investment Plan, Flexible Drawdown Plan and Select Account.
Canada Life executive director Richard Priestley noted that because new Passive Portfolios are based on Canada Life’s successful multi-asset investment funds, operating with the same range of Dynamic Planner risk profiles, the company is “confident that they can serve the needs of the market”.
“The new funds enable Canada Life to offer more solutions that answer a wider range of adviser and customer needs,” he continued.
“These portfolios are an attractive proposition which, for bond investors, offer simple, cost effective opportunities for diversification, which are easily understood by the average investor.
“A growing number of individuals are also choosing drawdown for their retirement income rather than conventional annuities, and many want a low cost exposure to investment markets.
“We see this development as an important part of our strategy to meet the changing demands of our customers as they approach and enter retirement.”
For more information on the new passive range from Canada Life, click here.