Quilter Cheviot has announced the launch of the Tailored Income Service, a personalised decumulation offering.
The offering will be based on Quilter Cheviot’s discretionary portfolio service models, which will be selected depending on the client’s risk profile, capacity for loss and objectives, with the investment manager tailoring the portfolio to the client’s exact needs.
This tailored approach will see the investment manager select one, or a combination, of three core approaches:
- A dynamic and actively managed two-pot approach, with a short-term income reserve portfolio to meet regular and unexpected expenses, alongside a growth portfolio, to allow the majority of the assets to grow and provide longevity.
- A natural yield strategy where income is generated from dividends and interest, providing clients with a steady income stream without the need to sell investments.
- An encashment approach, where income can be taken flexibly and in a personalised manner by selling down investments in a way that works with the client’s spending and according to the desirability of maintaining specific holdings.
Quilter said: “The Tailored Income Service has been designed to reflect its extensive experience in managing decumulation portfolios, as well as the company’s belief that financial planning enables more informed decisions to be made around portfolio structure.”
It has chosen a personalised option for it decumulation service over a “one-size-fits-all solution due to the unpredictable nature of people’s lives and retirements.”
The difference between specific retirement income funds or static withdrawal rates and Quilter’s approach is that it evolves with a client’s needs, market conditions and regulatory changes, helping to deliver sustainable income and peace of mind.
The minimum investment for the new decumulation offering will be £500,000. The charges for the Tailored Income Service are in line with Quilter Cheviot’s existing discretionary portfolio service.
Quilter Cheviot chief investment officer Caroline Simmons said: “Traditional ‘off-the-shelf’ retirement income solutions, often built around static withdrawal rates, cannot account for the realities of market volatility, evolving regulation, or the nuances of individual client objectives.
“Our tailored approach – whether that is through two-pots, natural yielding strategies, simple encashment or a combination of those – is designed to adapt to these complexities, ensuring a more confident, resilient and personalised retirement.
“At the end of the day life is lumpy, and this means people’s cashflows are too. Having a personalised service means those cashflow needs can be properly managed.”
Quilter Cheviot head of proposition Peter Gorogh added: “Decumulation planning doesn’t happen in isolation. It overlaps with estate planning, tax efficiency and long-term wealth sustainability.
“For clients with significant wealth or complex needs, a tailored strategy is therefore vital. Recommendations around the investment structure help inform a client’s drawdown strategy and can make a lasting difference to their retirement over both the short- and long-term.”
