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Canada Life launches 5 passive life and pension funds

9 November 2017

Canada Life has launched five new low-cost life and pension funds as part of its first “large-scale push” into the passive funds sector.

The Canlife Passive Portfolio funds of funds have low Ongoing Charges Figures of between 0.20% and 0.24%. Alongside these, Canada Life is also launching 11 new links to single strategy passive iShares funds with OCFs of between 0.06% and 0.22%.

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, the new portfolios will remain within a specific risk band by following Dynamic Planner’s asset allocation risk profiles three to seven.

The new portfolio funds will implement their asset allocation through the passive iShares tracker funds, managed by BlackRock Investment Management, covering UK and international equities and bonds.

In a statement, Canada Life said the five Passive Portfolio funds have been classified as Risk Target Managed solutions by Dynamic Planner, which should offer 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.”

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.”

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