Sustaining funds

A common assumption for investors facing retirement is the need to reduce risk within their pension funds and consolidate previous gains. A client that has saved for many years and has a lot to lose is unlikely to start dabbling in emerging markets, equities or high-risk junk bonds for example. The de-risking of portfolios is certainly sensible for those in company schemes or that don’t want to actively manage their investments. But this perceived wisdom that impending retirees will suddenly convert all their investments to cash isn’t being universally adopted. In reality, clients have a...