Copia Capital Management has launched a range of managed portfolios that use Blackrock's iShares exchange-traded funds [ETFs] and are purpose-built for the decumulation phase of retirement planning.
The portfolios take into account a client's risk tolerance, planned withdrawal rate and time horizon - essentially their life expectancy.
The three functions are intended to work together in an effort to help advisers build up a picture of how much money can be reasonably drawn down from a retirement portfolio over a number of years while keeping in mind a client's individual level of risk.
Copia said the retirement income portfolios were designed to mitigate the risk of a client running out of money, taking into account sequencing, longevity, interest rate and inflation risks. It added the range had been built for advisers managing client money in retirement to try and help them achieve optimum returns from the decumulation phase.
The portfolios are available through the Novia platform, which is owned by Copia's parent company Novia, although Copia has not ruled out launching the portfolios on other ETF-accessible platforms at a later date. The portfolios cost an additional 0.30% plus VAT on top of Novia's platform charge.
Copia Capital Management head Henry Cobbe (pictured) claimed the firm was the first DFM to launch specialist decumulation portfolios and added it was trying not to "recycle old thinking into the new world".
He added: "Decumulation is very different from accumulation. It has different objectives, different risks and requires a different investment approach.
"We don't think it is right to recycle old thinking into this new world. Only advisers know their clients' retirement income needs and circumstances. Our retirement income range is purpose-built to give advisers a compliant investment solution that matches a ‘safe withdrawal rate' risk level and time horizon for each client. This is risk-profiling as it should be."
BlackRock head of iShares retail UK sales Pollyanna Harper described the service as an "exciting solution" for the adviser community. "Whether the aim is to provide equity income or manage bond duration, using ETFs to build portfolios equips investors with targeted tools for achieving exposures that match their outlook and help pursue their goals," she added.
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