Investec Asset Management is considering launching its first income product.
David Aird, the firm’s UK managing director, says Investec has equity, fixed-income and multi-asset offerings but does not have a specific income product. Aird says he has not yet decided which asset class or market the product will focus on.
He says: “There are going to be lots of people crying out for income and they are going to have to sweat their assets very hard when they get into retirement, especially when they get into income drawdown.”
Andy Merricks, head of investment at Skerritt Consultants, says: “Elderly or retired or drawdown clients are desperate for income but advisers should be careful about recommending products that force an income when there is not one to come by, like structured products.”
Aird says he is looking at Investec’s managed solution range, to ensure it is compatible with IFAs’ risk-profiling processes.
The range comprises six multi-asset funds, including the flagship £1.9 billion Cautious Managed fund, which is run by Alastair Mundy, head of the contrarian team, and the £382m Multi-Asset Protector fund, run by Max King, portfolio manager, and Philip Saunders, head of global asset allocation.
Aird says: “We need to make sure that the range can fit into the distribution model that is developing for the RDR, so they fit comfortably with the IFA risk-profiling process.”
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