Copia Capital Management has launched its first decumulation portfolios.
The company has created the Copia Select Retirement Income Plus portfolios, made up of five risk-rated portfolios designed to use guaranteed income alongside a managed portfolio.
The portfolios are delivered by Just Group’s secure lifetime income, which Copia said is 100 per cent uncorrelated to other asset classes, allowing Copia’s investment team to produce a complementary investment proposition.
Robert Vaudry, managing director of Copia, said people in retirement face very different risks to those who are still working and building their wealth.
“Those in drawdown have had a stark reminder of the risks facing their income over the last few months.
“Market volatility has meant many in decumulation have had to continue taking an income during unfavourable market conditions, while the cost of living crisis is eroding the spending power of retirement savings and increasing the possibility of people running out of money sooner than required.”
At the same time, he said, central bank efforts to quell inflation through interest rate rises are hitting bond capital values, adding further uncertainty to investment outcomes.
“To properly manage these risks, decumulation requires a different investment approach to accumulation, and yet many advisers use the same portfolio ranges for both objectives.”
Select Retirement Income Plus & ALI combined asset allocation
| | Retirement 1 | Retirement 2 | Retirement 3 | Retirement 4 | Retirement 5 |
Equity | 20% | 35% | 50% | 65% | 80% |
Fixed Income | 40% | 25% | 15% | 8% | 5% |
Alternatives | 15% | 25% | 25% | 22% | 15% |
SLI | 25% | 15% | 10% | 5% | 0% |
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