What do the decumulation portfolios offer?

The FE Investments Decumulation portfolio range aims to provide your clients with a well thought out, planned and sustainable income drawdown during retirement. The portfolios are constructed to consider the income needs of your clients, while also making sure that their capital does not run out prematurely, working in tandem with a cash-flow plan.

Our decumulation illustrator tool helps bring your clients' circumstances to life by demonstrating the different options available in decumulation, helping you ensure they have a diversified and sustainable retirement portfolio.

Providing your clients with a sustainable retirement income portfolio

As a client transitions from accumulation before retirement to a decumulation focused strategy, a change in the investment approach is needed. While previously the primary risks were volatility and changes in the value of their portfolio, we recognise that their primary concerns in decumulation are whether they have enough income to meet their retirement goals and needs.

Our decumulation models look at the capital requirements and income needs with a variety of time horizons, income scenarios and market events taken into consideration in order to provide your clients with a suitable retirement portfolio that meets their needs with a minimal shortfall or longevity risk.

Why choose our Decumulation range?

Rethinking income risk

 

In retirement, risk becomes focused on matching portfolio returns with client cashflow requirements. As such, traditional risk questionnaires built around volatility bands are not suitable for decumulation clients.

FE Investment’s Decumulation Illustrator encourages retirees to think about risk in a different manner to how they may have done in accumulation. The tool instead frames risk as the probability of your client running out of money and can help financial advisers discuss income drawdown in a way that is relevant, meaningful and understandable to clients.

Client-led retirement income

 

We recognise that investors all have different backgrounds and retirement needs and that a nuanced approach is often needed. Our Decumulation Illustrator helps bring your client's situation to life and provide them with the information needed to help choose the decumulation plan that best fits their circumstances.

Our decumulation models can help centre planning on the long term drawdown needs to make sure that clients' retirement goals are achievable, while also ensuring they do not run out of money before those goals are achieved.

A broad view of the client's needs

 

Our broad-view approach to decumulation portfolio construction helps mitigate retirement risk in both the immediate future and the longer term. The Initial Income Portfolio looks to mitigate sequencing of returns risks associated with short-term market fluctuations, while our Long Term Retirement Portfolio considers the client's needs over the longer term with the goal of maintaining enough capital for a long term drawdown.

Allowing capital to go further

 

Our decumulation illustration tool allows you to calculate the likelihood that a retiree's retirement pot will deliver on their retirement goals.

We can help you plan for your client's retirement and enable their money to go further by comparing different investment strategy and income projections across different time horizons.

The Decumulation range in numbers

15

holdings in the Initial Income portfolio

37

holdings in the Long Term Retirement portfolio

4

up to 4 portfolio rebalances per year

£5bn+

in total assets managed by FE Investments

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