The Canlife Passive Portfolio funds of funds are being launched with ongoing charges figures [OCF] of between 0.20% and 0.24%.
Alongside these funds, the company is also launching 11 links to single strategy passive iShares funds with OCFs of between 0.06% and 0.22%.
The five passive portfolios consist of the 11 iShares funds plus Canada Life’s own money and property funds.
The 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.
The five funds have been classified as risk target managed solutions by Dynamic Planner, “giving comfort to 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”, the company said.
The portfolios sit in Dynamic Planner’s risk profiles three through to seven.
The funds are available through Canada Life’s Pension Investment Plan, Flexible Drawdown Plan and Select Account.
Richard Priestley, executive director at Canada Life, said: “The new passive portfolios are competitively priced and risk target managed, both of which are increasingly in-demand by advisers. They are also based on Canada Life’s successful multi-asset investment funds operating with the same range of Dynamic Planner risk profiles, so we’re 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. 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.”
Index investing growth
Claire Finn, managing director at BlackRock, added: “Over the past decade we have seen significant growth in index investing as advisers and individuals seek cost-effective investments that offer both choice and diversification. Through our iShares index funds, Canada Life’s new product range will offer client’s access to individual funds as well as a comprehensive set of risk managed portfolios.”
The new funds:
- Canlife Passive Portfolio 3 (Life Series 5; Pension Series 5), OCF 0.20%
- Canlife Passive Portfolio 4 (Life Series 5; Pension Series 5), OCF 0.21%
- Canlife Passive Portfolio 5 (Life Series 5; Pension Series 5), OCF 0.22%
- Canlife Passive Portfolio 6 (Life Series 5; Pension Series 5), OCF 0.22%
- Canlife Passive Portfolio 7 (Life Series 5; Pension Series 5), OCF 0.24%