Segmented Drawdown Strategies

parawhat

We tend to use Fidelity FN for lower value drawdown work, although I'm uncovering a few issues when it comes to being able to manage decumulation strategies that are anything other than a regular withdrawal directly from portfolio. For example, if we want to run model portfolios and a bucket strategy (i.e. a few years in cash to provide income), the platform doesn't really have the functionality to 'up' the cash holding without messing up bulk rebalancing of model portfolios.

Anybody aware of any lower cost platforms (0.20-0.25%) that offer decent segmented drawdown and/or the ability to operate bucket type strategies without messing up bulk rebalancing of models?

I'm aware of Standard Life (really like their tailored drawdown), Transact and a few more niche SIPP providers but they are a tad more expensive than I'd ideally like.

Jona

AJBell?  Sipp has a separate bank account and allows you to build model portfolios.  So can hold cash for income / fees with the balance being fully invested.

Cost is 0.2% plus trading fees (£1.50 per trade if using a model).

Not too sure how flexible their income options are though and extra admin charges apply for drawdown i think...

Might be worth a look.

Jamie_Barnes

Hi, my only other suggestion would perhaps be Nucleus, but you're not hitting the 0.2-0.25% charge, it'll be 0.35%. However, that's the only fee you have to consider unlike Transact and others so when it comes to decumulating assets it can save quite a bit of money over time. I don't think there are any providers out there that offer true flexibility that aren't more pricey, would love to be proven wrong.

parawhat

Thanks guys. AJ Bell not a bad shout Jona so will do a bit more research on that one.

I've never actually used Nucleus Jamie so don't know much about them and they're not on our (cough) 'panel'. Agree, if that's their only fee a bit simpler than Transact so might be one to look a bit more into at our next round of due dilligence.

Nathan

Royal London