Magellan moves on retiree market

Posted by Anton Murray Consulting on 29 Jun, 2021

InvestorDaily

The funds management giant has launched a new offering that it says will solve many of the complications and trade-offs involved in managing money for retiree investors. Magellan’s FuturePay, which launched to the market this week, will “help investors and their advisors to meet the challenges of establishing a regular income from their accumulated savings”, according to the fund manager’s chief executive Brett Cairns. “If you’re looking for predictable income in retirement, it often means accepting a lower income and with limited growth, and you might have to dip into capital to achieve that,” Mr Cairns told attendees at a launch event on Tuesday.

“If you want to invest for growth, your income becomes less predictable – you can hand that problem to an insurance company, but it comes at a higher capital cost and your access to capital is more limited.” Mr Cairns said advisers often got around these problems by using a “bucketing” strategy with a cash buffer they could adjust depending on market movements. “Broadly what happens is an adviser will develop a portfolio of growth assets and a cash account that’s sized in time – people will say I’ve got two or three years’ worth of cash,” he said.

The rest of this article can be found at investordaily.com.au.

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