Invesco is looking to target companies with more than 100 employees with the launch of its defined c...
Invesco is looking to target companies with more than 100 employees with the launch of its defined contribution product launched last week.
The group is outsourcing its administration to Scottish Life and is linking up with Barclays Global Investors to provide eight index trackers on top of a range of inhouse actively managed portfolios. Investors will be able to choose their own mix of portfolios on offer.
The service is being aimed at fee-paying intermediaries and benefit consultants and Invesco is confident that defined contribution will provide it with a growth market.
The group's parent Amvescap has 12 years experience of this market in North America and now runs $35bn.
Terry O'Malley, sales and marketing director for Invesco's defined contribution business in the UK, said decreasing birth rates, earlier retirement and longer life expectancy were all putting a strain on defined benefit schemes.
The group is also looking to use its product for the stakeholder market.
David Butcher, managing director of defined contribution at Invesco, said: "Stakeholder is sponsored by the Government so it is really going to open up the market. It will accelerate the shift away from defined benefit ."
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