Discretionary fund manager Copia Capital Management has rolled out the Copia Select Retirement Income Plus (RI+) − a decumulation portfolio strategy which works alongside a guaranteed income asset.
The guaranteed income asset is delivered by Just Group’s Secure Lifetime Income (SLI).
Copia, which is the investment solutions division of platform provider Novia Financial, said the new range of five risk-rated portfolios is designed to address decumulation risks and to help advisers comply with the incoming Consumer Duty rule to “avoid causing foreseeable harm”.
Stark reminder
Robert Vaudry, managing director of Copia, said: “People in retirement face very different risks to those who are still working and building their wealth.
“Those in drawdown have had a stark reminder of the risks facing their income over the last few months. Market volatility has meant many in decumulation have had to continue taking an income during unfavourable market conditions, while the cost-of-living crisis is eroding the spending power of retirement savings and increasing the possibility of people running out of money sooner than required.
“At the same time, central-bank efforts to quell inflation through interest-rate rises are hitting bond capital values, adding further uncertainty to investment outcomes. To properly manage these risks, decumulation requires a different investment approach to accumulation, and yet many advisers use the same portfolio ranges for both objectives.
“Our new RI+ portfolios are purpose-built for decumulation to support advisers in delivering improved portfolio value and guaranteed income over time, compared with a traditional 60/40 decumulation portfolio, without increasing the investor’s overall risk.”
