MAY 2021


Register with PP

Newsletter, Jobs & Event Alerts


Thesis launches decumulation portfolio service

5 April 2018

Thesis Asset Management has launched a decumulation portfolio service, designed to deliver long-term income while reducing hits from the market in the near term. 

The Managed Income Service will invest in two broad asset types; lower risk defensive assets and higher risk growth assets.

The service will actively rebalance quarterly between the lower and higher risk assets, producing the required income from the lower risk assets in the early years. The firm said the approach aims to prevent volatile equities being sold into a market downturn, while retaining an increasing exposure to the market to take advantage of long-term growth.

The accumulation portfolios mirror the format of the existing Thesis collectives model portfolios four to seven (moderate to high risk). The models are made up of predominantly actively managed funds, diversified across different regions and asset classes.

Lawrence Cook, director of marketing and business development (pictured), said: “Advisers are increasingly aware of the different risks investing for income brings compared to the savings or accumulation phase. They have told us there is a real lack of innovation to meet client needs. As a result of that feedback we have developed our new service, Managed Income Service, which we believe will be a great help in managing the decumulation risks.”

Cook said a numbers of risks including volatility, inflation, longevity and sequencing can all have “devastating effects” on portfolios, making it especially important that people have the right products and services to help them throughout retirement.

He added: “The new service aims to give investors peace of mind in the early years of drawing income from their portfolio, while maximising the opportunity for the bulk of their investments to grow over time. Rather than capture all the movement of underlying markets, it is designed to reduce the exposure to the riskier assets early on, and give the portfolio a better chance of delivering income over the long term.”

Professional Paraplanner