Quilter Cheviot has launched a tailored discretionary decumulation offering, designed to adapt to market volatility, evolving regulation and individual client objectives.
The Tailored Income Service will be based on Quilter Cheviot’s Discretionary Portfolio Service models, which will be selected depending on the client’s risk profile, capacity for loss and objectives.
The investment manager can choose from one of three core approaches or a combination of those, the firm said.
These include an actively managed two-pot approach, with a short-term income reserve portfolio to meet regular and unexpected expenses, alongside a growth portfolio to allow the majority of assets to grow; a natural yield strategy where income is generated from dividends and interest; and an encashment approach, where income can be taken flexibly and in a personalised way by selling down investments in a way that works with the client’s spending.
The firm said the new offering has been designed to reflect Quilter Cheviot’s experience in managing decumulation portfolios, as well as its belief that financial planning enables more informed decisions to be made around portfolio structure.
Its decision to choose a more personalised option was driven by the unpredictable nature of people’s lives and retirements, it said.
The minimum investment for the Tailored Income Service will be £500,000.
Caroline Simmons, chief investment officer at Quilter Cheviot, said: “Traditional ‘off-the-shelf’ retirement income solutions, often built around static withdrawal rates, cannot account for the realities of market volatility, evolving regulation, or the nuances of individual client objectives.
“Our tailored approach – whether that is through two-pots, natural yielding strategies, simple encashment or a combination of those – is designed to adapt to these complexities, ensuring a more confident, resilient and personalised retirement.
“At the end of the day life is lumpy, and this means people’s cashflows are too. Having a personalised service means those cashflow needs can be properly managed.”
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