Pension savers will be among the targets of Aviva Investors' forthcoming low volatility multi-asset strategy, the firm's head of multi-asset has said.
Peter Fitzgerald (pictured) expanded on the plans while discussing the potential for age-targeted investment products following of Budget pension reforms.
He said: "We are working very hard to come to market with a low volatility solution to directly target these client outcomes referred to. I believe individuals should be free to decide what they do with money they have saved for years."
The low volatility products will cover a range of asset classes, he added: "If you have been asked to buy an annuity where there was zero liquidity, you should be able to buy soomething that includes infrastructure and property."
In February, Investment Week revealed Aviva Investors' plans to launch a low volatility absolute return fund to rival SLI's popular GARS strategy.
Fitzgerald was speaking alongside Henderson director of UK equities Chris Burvill and Old Mutual multi-manager head John Ventre at the Morningstar Investment Conference.
The discussion comes two months after a shock Budget announcement promising retirees more control over their pension savings. Annuity provider shares plummeted and a number of firms have adapted products as a result.
Old Mutual's Ventre disagreed with the prospect of age-targeted products: "My own view is lifestyling is incredibly dangerous. Targeted age-related funds miss the granularity of providing a customer with the solution that is right for them."
A 70-year-old high net worth individual might wish to take more risk in order to invest in his family finances over the next generation, he said, while a 30-year-old may sabotage a more risky portfolio by thinking in terms of short-term gain.
Henderson's Burvill also questioned the assumption younger clients expect more risk: "Should not the capital be built up a little bit more gently, given the importance of compound [returns] over the longer term?"
