Lifestyle funds present challenge to intermediaries

At a time when many fund groups are closing or rationalising product ranges, Fidelity's decision to launch lifestyle funds is a refreshing change. In May, it is bringing out a series of fettered funds of funds that will start off in equities and then switch across to bonds and cash as they reach set maturity dates. The approach is certainly different but it is too early to tell whether it is a sign of genuine innovation or yet another example of what the financial services industry excels at: inventing products no one really needs. Either way it raises a number of issues about lifestyle...