Some of the world's largest asset managers are working on development of fund offerings that include features such as income guarantees or principal protection.
In contrast to standalone living benefits, the new products would actually be embedded into a mutual fund offering.
Firms such as Pimco, Russell Investments and John Hancock have expressed strong interest in and are actively developing such offerings.
The availability of lower cost insurance features and regulatory complexities are major obstacles at the moment. Counterparty or credit risk is also a concern among advisors who would distribute the products.
Source: Investment News
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