A lot has been said about the migration to drawdown strategies in the wake of the pension freedoms, and EQ Investors seeks to tap into growing demand for the retirement income solution. This is not to say that annuities have been made redundant. Guaranteed income for life remains the ideal solution for many.
Some pensioners simply cannot weather a dramatic drop in the performance of their portfolio, so investment in uncorrelated assets helps to mitigate this. Recent history has seen greater correlation between bond and equities – threatening to undermine the aim of a traditional diversified portfolio to provide stable returns at a time of instability and uncertainty in global equity markets.
It could turn out to be a good proposition within a well-diversified portfolio.