Pensions  

Product review: Parmenion Guardian portfolios

Product review: Parmenion Guardian portfolios

Parmenion has unveiled its new ‘Guardian’ portfolios, which are designed to meet the demand from financial planners for risk-graded portfolios. The portfolios aim to help advisers cope with the challenges of pension decumulation and income drawdown.

Made up of a set of 10 risk-graded portfolios, the range will aim to help investors who are looking to maintain yield while preserving capital and minimising portfolio volatility at the same time. The portfolios will be mapped to an existing risk framework, and their robustness has been tested using Moody’s Analytics. The funds will have an active and passive blend.

The portfolios will be available through Sipps, Isas and general investment accounts on the Parmenion platform. They have an ongoing charge of between 0.36 per cent (risk grade 1) and 0.86 per cent (risk grade 10). Its platform charge is 0.25 per cent.

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www.parmenion.co.uk

Comment:

Both risk-rated portfolios and drawdown have been highly talked about areas in recent years. And since that Budget announcement, drawdown in particular has gone from strength to strength. It has now become a huge part of the pensions industry, and many providers have come out with drawdown-specific funds aimed to help clients out.

At first glance, this does not selection of portfolios don’t look much different to any other we have seen in the past years. The only exception is that instead of just a few, there are 10 different risk grades for investors, which may help tempt clients in. But Parmenion has spent two years planning this product so it is theoretically very well researched.

So far the portfolios are only available through Parmenion’s own platform. This could eventually be a restriction for the group, but the low charges for both the platform and funds may work in its favour in luring people onto the platform.