Discretionary fund manager 7IM has launched what it describes as a “pioneering” Retirement Income Solution (RIS) on its platform.
A key feature is that it uses a ‘bucketing’ approach, it said.
The approach takes all the client’s selected assets and treats them as a single portfolio that is aligned with their risk profile.
Investments are then allocated into a series of ‘buckets’ invested across three time horizons: short, medium and long-term.
Alongside them is a cash bucket to provide income during periods of market downturn, delaying the need to sell down and crystallise losses from the investment buckets.
It’s underpinned by 7IM methodology which takes the client’s inputs and overlays them with sophisticated modelling techniques to create a model that provides a probability of the client having excess capital at the end of their plan.
To launch RIS, 7IM partnered with DFMs EQ Investors, RBC Brewin Dolphin, Omnis Investments (part of The Openwork Partnership) and will be working with others to offer their investment solutions alongside 7IM’s.
Verona Kenny, managing director of intermediary at 7IM said: “Since the introduction of pension freedoms, people have had more control over – and decisions to make about – their pension pots than ever before.
“But that increased freedom has also introduced a minefield of potential pitfalls that could leave people with not enough money to see them through retirement.
“That’s why we have got together with several key partners to launch the 7IM Retirement Income Solution (RIS).”
She said the framework is a “key piece in helping to solve an increasingly complex retirement puzzle.”
Sophie Kennedy, joint chief executive at EQ Investors said: “Drawdown is providing retirees with more freedom to create an income that suits their lifestyle and vary this income at different stages of their retirement. This new solution will help advisers manage this transition.”
Antony Champion, head of intermediaries at RBC Brewin Dolphin said: “This is an area that requires a broad range of solutions rather than just a ‘one size fits all’ approach, and so we are delighted to make our range of active MPS solutions available to advisers via the 7IM platform.”
Matt Latham, head of digital propositions at The Openwork Partnership said: “7IM has come up with the perfect solution that delivers on both fronts in the form of their innovative Retirement Income Solution powered by the Omnis Investments range of DFM portfolios.”
7IM provides investment services to professional wealth managers, planners, advisers and private investors. These include: discretionary investment management, a range of multi-asset portfolios, an investment and open architecture trading platform and an app, 7IMagine.
