Defaqto has teamed up with Quilter to publish an in-depth review of the income fund market.
The new publication titled ‘The benefits to advisers and their clients of using multi-asset income funds‘ explores how income funds work and the main differences between accumulation and decumulation investing.
It also includes frameworks for rating and selecting income funds from both a quality and suitability point of view.
Through the CPD-accredited guide, which is split into two parts, advisers will learn to describe what income funds are, how they work and how they can be used as well as identify the different types of income fund, understand the benefits of income funds to advisers and their clients and identify the key differences between accumulation and decumulation investing.
Patrick Norwood, investment consultant at Defaqto, said: “Following the introduction of the Pension Freedoms reforms in 2015, people can adopt a more phased approach to their retirement. The flexibility of being able to stay invested yet withdraw an income has changed things for investors.
“Advisers and their clients need to consider how best to achieve such a sustainable income. Many traditional investments are now producing lower levels of income. For example, several companies from dividend-paying sectors cut or even suspended their payouts in the wake of COVID-19. This CPD accredited publication guides and educates advisers in this area.”
