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 range consists of two portfolios which 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 cashflow plan.
Our Decumulation Illustrator tool, which can be accessed through FE Analytics, 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 Illustrator tool looks 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.
The Decumulation portfolios have been built to work in tandem with our Decumulation Illustrator tool in FE Analytics. The 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, and ultimately, good client outcomes. For this reason, access to the tool via FE Analytics is required when recommending the Decumulation portfolios to your 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 Illustrator 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
holdings in the Initial Income portfolio
holdings in the Long Term Retirement portfolio
up to 4 portfolio rebalances per year
in total assets managed by FE Investments
See our other investment portfolios
The Responsibly Managed range uses our ESG framework to create responsible portfolios and provide risk-targeted growth with a positive impact.Discover our portfolios
Four star winner for DFMs
FE Investments is rated five stars as a DFM MPS on platform by Defaqto
Five star winner for DFMs
FE Investments won the Wealth Manager: Rising Star Company of the Year at the 2020 Portfolio Adviser Wealth Partnership Awards
Discretionary Fund Managers three star winner
FE Investments won the award for Best Model Portfolio Service
FE Invest won the award for Best Model Portfolio Service
Insights from FE fundinfo
Whilst investing in portfolios often means investing for long-term returns, this can sometimes conflict with an investor’s current situation. Can you complete the financial advice puzzle without portfolios of different term-lengths available to you?