Discretionary manager Psigma Investment Management has become the latest firm aiming to take advantage of the upcoming pensions reforms by launching a multi-asset income strategy.
The firm has launched a new Cautious Income Strategy model portfolio service (MPS) explicitly “designed to meet the need arising from the pensions revolution”.
It will be modelled on Psigma’s existing Cautious Strategy but wih an added tilt towards generating income.
It will target an annual yield of approximately 3 per cent, with a total return target of inflation plus 2 per cent, and Psigma said the total expense ratio (TER) for the strategy would be a maximum of 1.35 per cent.
Psigma said the strategy will be available both directly from the discretionary manager and also on Transact, Ascentric, Aviva and the Fusion Platforms.
Asset and wealth managers have been scrambling so far this year to launch products that will appeal to retirees in 2015 who will be allowed to take complete control of their pension, rather than having to buy an annuity.
