Thesis Asset Management will be launching a new product aimed at addressing advisers’ decumulation problems.
The product will aim to address the conflicting demands of being in drawdown: attempting to beat inflation but at the same time not losing assets in the market.
Lawrence Cook, director of marketing and business development at Thesis, said the service should be ready in about a month’s time.
He said: “It seems sensible to provide some sort of insurance option. The conclusion we have come to is that there needs to be a trade off.
“We are close to launching a service. We are in discussions with one of the wrap platforms to offer that to them first off.
“What it will do is it will balance the choice of saying ‘I need access to risk assets because I need to beat inflation’ but providing insurance in the early years so the plan isn’t wrecked.”
Mr Cook said the service would also address the issue of risk through the portfolio’s allocation.
He said: “What we have done across the piece is to say ‘look, we are not crystal ball gazers, we don’t know what’s going to happen’.
“There is probably a 20 per cent chance there could be a stock market crash, a 70 per cent chance it will bumble along and a 10 per cent change we will se markets defying gravity.
“We have taken risk off the table across a range of assets.”
He added that the service would also provide flexible access and transparency.
damian.fantato@ft.com
