Parmenion has created 10 model portfolios designed specifically to cope with the “challenges” retirees face when withdrawing their pension funds.
After spending two years researching the difficulties of pension drawdown, the investment manager has launched the Guardian portfolios which aim to maintain yield, preserve capital and simultaneously minimise portfolio volatility.
According to Parmenion managing director Peter Dalgliesh, the company has seen significant growth in its in-house Sipp offering - available on the platform - since the introduction of the pension freedoms last year.
Launched in June 2014, the Sipp now administers more than £475m.
Mr Dalgliesh said: “We believe it is helpful to express the risk of going into drawdown in terms of the likelihood, as time passes, of being able to secure the same level of annuity as available at the outset.”
The series of risk-graded portfolios have been tested using research company Moody’s Analytics to evaluate the range of risks and outcomes for the portfolios.
Richard Goodall, distribution and marketing director, said the Guardian portfolios will allow advisers and their clients to consider the drawdown option with “greater confidence”.
The Guardian portfolios will be available through Parmenion’s Sipp, Isa and general investment account charging between 0.36 per cent and 0.86 per cent a year.
Parmenion’s DFM fee is 0.30 per cent with no initial dealing, and fund switches are charged at a reduced rate of 0.45 per cent.
Greg Heath, managing director of Derbyshire Booth, said this offering responds to a gap in the market, but that its success might depend on how easy it is to understand.
“As long as it isn’t too complicated and it simple to explain to the client, then there is a demand for it.
“I find that some products tend to be over-complicated, and while clients don’t need to know the technicalities, it needs to be straighforward enough to ensure they understand why they would use it.”
Mr Heath suggested it might have taken a while for a specialist pensions portfolio range to come to the market because people have been waiting for the legislation around pension freedoms to settle down.
“I think there has been a lack of innovation from the pension providers because of the lack of clarity in some aspects of the regulation.”
katherine.denham@ft.com
