The asset management business of New York-listed State Street has broadened its range of funds for UK workplace pension schemes.

State Street Global Advisors has launched a fund aimed at those likely to remain invested in retirement following the introduction of pension freedoms in the UK.

The Timewise Target Retirement Choice Fund aims to “make the most" of the new pension freedoms, which came into force in April to give pensioners greater control over their retirement pots. 

The fund will be highly diversified across developed and emerging market equities, government and corporate bonds and a range of alternative assets. It will target a balance of capital stability and growth, while offering full flexibility, allowing investors to draw down income over time, take periodic cash withdrawals or annuitise.

“Following the pension freedom reforms, we thoroughly researched the attitudes of members in both the saving and pay-out phases. What became very apparent was the desire for a default option in retirement that allowed people to keep their options open and that inspired investment confidence,” said SSGA’s head of defined contribution in Europe, Nigel Aston.

“Retirement can be unpredictable and default funds need to be more intuitive by providing a broadly appropriate level of risk for members based on their stage of life – rather than targeting a specific outcome, be it cash, annuity or drawdown on a particular date,” he said.

SSGA said it may consider including new asset classes or investment approaches if it makes sense to further diversify the fund's asset mix.

As of the end of June, State Street Global Advisors had $2.4 trillion in assets under management.