Macquarie Funds Group (MFG) has launched an investment team that will look at developing products in the area of longevity risk.
The MFG Longevity Solutions Team will be led by Andrew Robertson, who previously worked for global consulting firm McKinsey & Co. Most recently he had worked for his own boutique company specialising in longevity risk.
The team will also be made up of internal staff specialising in the area of risk management.
"There is a gap in the Australian market for longevity risk products which has already been highlighted in the Henry Review," Robertson told InvestorDaily.
"The global financial crisis has further highlighted a need for these products, with superannuation savings decreasing."
The group will develop products in the area of risk management, funds management, actuarial and tax.
The products will be developed for both pre and post retirees and will target the retail market and superannuation funds.
"We will be looking at products around the development of longevity risk indices, derivatives and capital market products. There are some exciting products in the US which we may tailor to the Australian market," Robertson said.
Such products may include a market guarantee that will ensure products don't drop in value in falling markets, he said.
"We certainly have the balance sheet to develop such products. We will also be tapping into our global network to provide solutions that manage longevity risk."
