Sequence risk has been a hot topic lately and with recent market volatility questions of post-retirement portfolio construction are at the forefront of advisers’ minds.
However, new research from CWC Research produced for the FE Investment Summit later this month, finds adviser attitudes towards sequence risk and its management within retirement portfolios vary widely across the industry.
The research, based on detailed interviews with advisers, finds that while many believe sequence risk is an issue for their clients, not all agree. Within the CWC Research sample, one third of advisers hold no cash whatsoever to manage market volatility, while 40% recommend holding two years’ or more.
Within the responses, Clive Waller, Managing Director, CWC Research, found one adviser recommending seven years’ worth of income in cash or near cash for clients with a low attitude to risk, while another argued that holding a cash reserve reduces the return on the portfolio, making it harder to achieve the benchmark and the portfolio asset allocation, dictated by the client’s attitude to risk, is sufficient hedging of sequence risk.
Such diverse views are confusing for would-be clients and do little for confidence in financial advice. Fortunately, advisers will be able to hear further details of the research at the FE Investment Summit on 22 September and debate best practice for post-retirement investment across all market cycles. Speakers include:
Morning Session – Blending asset management, platform & insurance solutions. What do advisers need to consider?
Clive Waller – CWC Research
Thomas McMahon – Financial Express
Martin Lines – Partnership
Nick Dixon – Aegon
Simon Massey – Met Life
John Lawson – Aviva
Gregg McClymont – Aberdeen Asset Management
Carlton Hood – Old Mutual Wealth
Paul Boston – Novia
Richard Romer-Lee – Square Mile
Afternoon Session – The challenges for advisers. How to deliver compliant advice in a commercially viable manner.
Mark Polson – the lang cat
Ian Shipway – HC Wealth Management
Anthony Villis – First Wealth
Malcolm Kerr – Ernst & Young
Rory Percival – Financial Conduct Authority
Tickets are free for advisers, and £495+VAT for anyone else
To book your place email firstname.lastname@example.org.