LESS VOLATILITY MORE CONSISTENCY – CAUTIOUS
The majority of fund available for drawdown have daily volatility. This mean that if markets go down, your fund will be worth less in the morning. A popular alternative to this is to be invested in a portfolio which aims to smooth short-term volatility.
This enables more of a steady ride with returns. Funds which have smoothed return have a management style which holds back some profits in the good years so that when markets dip, they put these back on.
It provides a more consistent performance and one which many feel is more suited to income withdrawals through drawdown.
We have selected our drawdown solution with smoothed returns through extensive research factoring in management style, performance, and consistency.
THE PROVIDER
- Well respected brand established over 160 years ago
- Standard and Poor’s ‘A+’ rating for financial strength
- Over £500 billion assets under management
THE PORTFOLIOS
- Highly diversified globally and across asset classes
- Aimed at more cautious investors
- Various smoothed fund options
COSTS
1.5% typical total ongoing charges for a £100,000 investment. This includes fund management, product charges and advice.
WHO IT SUITS
Those who are wanting to access their pension flexibly but don’t like the idea of a volatile fund. Those who are more cautious and are prepared to accept less volatility for a more consistent return.
PAST PERFORMANCE
Smoothed Drawdown Past Performance (Feb 2017)
| Fund | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|
| Smoothed | 5.53 | 8.83 | 6.28 | 6.20 | 6.60 |
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