Investec Asset Management is considering launching its first income product.
The firm’s UK managing director David Aird 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.”
Skerritt Consultants head of investment Andy Merricks says: “Elderly or retired or drawdown clients 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 £1.9bn cautious managed fund run by head of the contrarian team Alastair Mundy and the £382m multi-asset protector fund run by portfolio manager Max King and head of global asset allocation Philip Saunders.
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.”