The funds on offer cover target dates from 2015 to 2050 inclusive. BirthStar says the funds can be used to match any type of goal such as retirement, children’s educational costs or any other life event, and make life easier for advisers to incorporate into a financial plan by focusing on the time frame for investing.
The ‘target date’ is the date that withdrawals are expected to commence to support an investing goal. Before the target date, the fund aims to grow the value of an investment, so is weighted towards higher risk assets. After the target date, the fund aims to protect the value of the investment, so is weighted towards lower risk assets, to support sustainable withdrawals.
Architas, the AXA-owned multi-manager, is responsible for the oversight of each fund, while the portfolio of investments inside each fund is managed by AllianceBernstein. The funds are managed out of London by David Hutchins and Karen Watkin, portfolio managers at AllianceBernstein.
BirthStar managing director Henry Cobbe says: “We want to make investing simpler and better value for investors without compromising on professionalism or expertise. Advisers are increasingly outsourcing asset allocation to focus more on financial planning. Meanwhile, customers without access to advice are going online to search easy to understand and easy to use solutions. By providing the whole investment journey within a single fund, we want to make properly designed and managed investing more straightforward and more affordable for all.”
AllianceBernstein managing director of sales and client relations Tim Banks says: “We are delighted to be supporting this proposition to make the simplicity and ease of target date funds which have been available from 2009 to our pension fund clients more broadly available to UK investors today. Now retail investors can also potentially benefit from these purpose built strategies, tailored towards specific investment goals, be it the first home, their kids university education or even retirement.”
