The classic 'lifestyle' approach to investment risk, where bonds and equities are rebalanced in a fund as an investor grows older, can no longer be seen as the rule of thumb for advisers, according to 7IM.
Speaking at a roundtable event on 22 May Seven Investment Management (7IM) quantitative investment manager Matthew Yeates said the default method of ‘de-risking' a portfolio by opting for a lower risk investment in later life threatened to leave people short of money in retirement. 7IM chief investment officer Chris Darbyshire added the industry had been stuck in a traditional investment risk mindset and had failed to effectively communicate that risk now included not having enough money to last the entirety of retirement, as well as the fear of taking too much risk. The pair said a s...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
