Select Decumulation

This page refers to the portfolio previously known as ‘Retirement Income’.

Copia’s Select Decumulation Range is designed for your clients wanting a purpose-built income portfolio as part of their broader retirement plan and would be suitable for your clients approaching, or in the retirement phase of their investment lifecycle.

KEY POINTS

To help with selecting the most appropriate portfolio from the Copia Decumulation range you can access the Risk Profiler and Income Calculator tools by clicking on the buttons below.

Income Calculator

The Copia Income Calculator is an illustrative tool designed to simply display the key details for a specific Copia Decumulation range portfolios

Risk Profiler

The Copia Income Risk Profiler is an illustrative tool designed to assist you and your clients in understanding their attitude to risk, an important step before making an investment in the Copia Decumulation range portfolios.

KEY INFO

YOUR CLIENT USE OF CAPITAL

Decumulation

OBJECTIVES

To provide a durable income portfolio for a given level of risk and expected time horizon

ASSET ALLOCATION

Strategic (optimised for different time horizons), Tactical allocation overlay using Risk Barometer

UNDERLYING SECURITIES

Copia screened ETFs and index funds

OPTIMISATION CONSTRAINTS

Min/Max position, Turnover, Asset range

COPIA FEE

0.30%

COPIA'S INVESTMENT APPROACH

The Select Decumulation investment approach is designed for your clients wanting a purpose-built drawdown portfolio as part of their broader retirement plan. We construct our Select Decumulation portfolios using ETFs and index funds for their diversification, transparency and cost efficiency.

1. Capital market assumptions:

Consideration of different risk and return expectations for different investment terms and for a broad range of asset classes.

2. Optimised asset allocation:

Optimised asset allocations targeting a specific duration for five risk profiles over four time horizon ranges.

3. Portfolio construction:

Select Decumulation portfolios built using ETFs and index funds with a low cost bias.

4. Tactical allocation:

Copia Risk Barometer drives tactical asset allocation changes within predefined ranges.

Why choose Select DECUMULation?

Copia’s Select Decumulation range is purpose-built for decumulation and has the objective of providing a durable income portfolio for a given level of risk and expected time horizon. The investment approach draws from institutional science on how best to mitigate the key retirement risk known as “shortfall risk”. Shortfall risk is driven by a range of factors such as sequencing risk, longevity risk, interest rate risk and inflation risk. Designed to allow investors to make the most of their “pension freedom”, this range combines a fresh approach with established science to address the challenges of investing for retirement.

Each portfolio has an optimised asset allocation strategy focusing on mitigating the key retirement risks, whilst providing a durable income stream over the investment term. Portfolios are constructed using ETFs and index funds with a low cost bias, and target a specific duration that relates to your client’s investment term.

 

ASSET ALLOCATIONS

Copia’s capital market assumptions use long-term average, or normative levels that incorporate a blend of historical capital market data and future expectations. These assumptions are developed and refreshed by EValue* using a variety of standard asset classes, the government yield curve, an investment-grade corporate yield curve, price inflation and wage inflation.

Based on these capital market assumptions, we create optimised allocations to match five risk profiles over four time horizon ranges. These aim to mitigate the key retirement risk known as “shortfall risk”. Shortfall risk is driven by a range of factors such as sequencing risk, longevity risk, interest rate risk and inflation risk. The optimised allocations mitigate “shortfall risk” making the portfolios better suited to match the present value of expected withdrawals over time.  

Evaluating Portfolio Strategy & Outcomes

Outcome (annualised return) analysis as of 31 July 2021

Select Decumulation - Outcome Annualised Return-311220212022

For illustration only.

Returns based on Total return, assuming income is re-invested immediately and rebalanced on due dates.

Performance includes simulated performance for data prior to launch date (28-Feb-2017). Actual data is used from 1-Mar-2017 to Present.

Tactical allocation

When our Risk Barometer points to potential spikes in market risk, we can reduce the equity exposure for each Retirement Income portfolio within certain predefined ranges.

For more information about the Copia Select Decumulation range speak to one of our relationship managers by calling 0345 850 8880 or emailing us at [email protected]

Copia Capital Management

Fleet House, 8-12 New Bridge Street, EC4V 6AL

Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

© 2021 Copia Capital

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