Thesis Asset Management (Thesis AM) is set to introduce a decumulation portfolio service that will seek to provide long-term income while mitigating the risks of investing in the near term.
Dubbed, Managed Income Service, the new offering will split the fund allocation between lower risk defensive assets aimed at wealth preservation and higher risk growth assets for growth.
Another part of fund will be invested in higher-risk growth assets to increase the portfolio’s value over time.
The portfolios will be rebalanced quarterly between the lower and higher-risk assets to produce the required income.
The new service, which will be available at the same management fee of 0.75% as Thesis’ existing model portfolios, enables an adviser to recommend a level of income to withdraw. The company said that the service could accommodate different income withdrawal rates.
Thesis AM marketing and business development director Lawrence Cook said: ” “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.”