IBOSS has renamed its ‘Income MPS’ range as the ‘Decumulation MPS’, to better address the client demographic that the range would be most suited to, and more appropriately describe the range’s overall service from a consumer perspective.
In Q1 2023, the FCA began conducting a thematic review of retirement income advice and aims to publish an impending report setting out their findings during Q4.
IBOSS CIO, Chris Metcalfe, says this prompted the asset manager to begin conversing with advisers about their clients that sit within the ‘at retirement’ stage of their investment journey “to ascertain how they saw this area of the market within their own business”, and more precisely, what kind of investment vehicles advisers were considering and what characteristics they would need to exhibit.
He says: “In our opinion, and for the foreseeable future, no AI will be able to replicate the crucial ongoing discussions between the adviser and their clients, and this will remain a complex investment area that their professional know-how, soft skills, and expertise will remain imperative.
“We are confident that our Decumulation MPS can help support the adviser and planner community within this space as it focuses on what we class as defensive characteristics, enabling clients to take the level of income they require for their own personal circumstances. We also have over 15 years’ experience of managing an income portfolio, allowing us to demonstrate a very strong track record.”
“Decumulation is a crucial financial strategy for retirees to make sure they have enough money to support themselves after they stop working without running out of funds and to maintain quality of life during retirement. The type of client who may benefit most from this investment approach would be one where volatility and drawdowns are some of their highest priorities as opposed to ones where potential future capital growth is the key driver of their investment needs.”
