UK – INVESCO is to include third-party funds in its product offering to the UK defined contribution (DC) market.
In addition to its own actively managed funds, the manager will now sell customers third party funds from Deutsche Asset Management, Morley Fund Management, Schroder Pensions and Threadneedle Pensions, as well as index-tracking funds from Barclay Global Investors.

“Customers are demanding more investment choice. They want a wide selection of actively managed funds from leading investment management groups, they want specialist opportunities, such as socially responsible funds and they want index-tracking funds as well as actively managed funds,” says David Butcher, chief executive of INVESCO Pensions.

There are now 43 different funds on offer through the company’s occupational DC product range, which includes vehicles for group personal pensions and additional voluntary contribution (AVC) schemes.
Thirty-two of them are also available through its corporate stakeholder product.

“Plan sponsors can select their own investment options including lifestyle and default options using any of the six different fund managers on offer,” says Butcher.
“What sets us apart from other stakeholder providers is our pricing differentiation by asset class. We are recognising in our charging policy the assets an individual has in his or her retirement account, and charging the individual accordingly,” he adds.

INVESCO charges stakeholder clients 0.9% for its own actively managed funds and 0.95% for third party providers’ active products and 0.75% for others’ passive funds.
For its own bond investment vehicles the company charges 0.7% and 0.5% for its cash funds.