Delta Lloyd is now the first pension provider to offer both active and passive fund management (index funds) within the life cycles of an available-premium plan.
Delta Lloyd is now the first pension provider to offer both active and passive fund management (index funds) within the life cycles of an available-premium plan. In order to meet the growing demand Delta Lloyd has extended the life cycles in its Personal Pension Plan with seven index funds. In the case of passively managed funds investments are made in reputable index funds (index trackers) that track a particular market.
Index investment is a passive form of investment, in which you track a stock market index (the AEX, the MSCI World Index or any other). Emiel Roozen, director of the board of Delta Lloyd Levensverzekering NV says: “There is growing interest in index investments in the big-business market. In terms of structure index investment is neat and simple, both for employers and stakeholders. Because there is no active fund management involved, the administration costs generally turn out to be lower. At the same time, index funds carry the same risks as those associated with a portfolio of individual shares. It appeals to employers and stakeholders to track a market index at relatively low cost.”
More choice for employers
This expansion of the investment portfolio means that big-business customers as of now have two options: in addition to investment funds that are actively managed by Delta Lloyd Asset Management, Delta Lloyd is now also offering funds that "passively" track an index. The aim of actively managed funds is to beat the market. With passively managed funds investments are made in reputable index funds (index trackers) that track a particular market.
Index investments: More security further down the line
Due to lack of awareness it is possible that stakeholders in available-premium plans take too many or not quite enough risks with their investments. Because of this there is a chance that they will then miss out on their desired pension. That is why rules are set out in pension legislation that minimise the risk of devaluation when it comes to the retirement date. Delta Lloyd meets the legal requirement of "capital prudence" by investing in life cycles. Now we are also offering life cycles with index funds. Tracking the market, for even more security further down the line.
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Further information:
Marijke Peijnenburg
Spokesperson for Delta Lloyd Insurance
Telephone: (020) 594 29 39
E-mail: marijke_peijnenburg@deltalloyd.nl