Marvin OnumonuElston has launched the Smoothed model portfolio service (MPS) and first Smoothed Retirement MPS ranges, available on Aviva’s pension portfolio, ISA portfolio and onshore bond wrappers.
The Elston Smoothed ASF portfolios are aimed at advisers who usually mix multi-asset funds and smoothed funds for clients building up their savings.
The approach uses a managed framework for more consistent implementation and rebalancing.
The Elston smoothed retirement ASF portfolios are for advisers working with clients drawing down their savings.
These portfolios have a near-term liquidity bucket, a medium-term stabiliser bucket and a long-term smoothed bucket, which includes an allocation to an Aviva smoothed fund.
The Elston Smoothed ASF portfolios and Elston Smoothed Retirement ASF portfolios have been designed by Elston and manufactured by Elston portfolio management.
They are available exclusively on the Aviva platform.
Henry Cobbe, founder and head of research at Elston Consulting, said: “Smoothed Funds can help the client experience of market risk.
“They therefore have a useful role to play in a retirement context for certain client segments.
“Speaking to our adviser community, we found there was interest in moving beyond an “all or nothing” approach to smoothed funds.
“This MPS solution builds on our 13 year experience in developing retirement strategies for master trusts, workplace pensions, DIY providers, DFMs and financial advisers.”
Scott Adams, head of adviser relations at Elston Consulting, said: “Our existing managed bucket Retirement Portfolios provide a degree of smoothing by splitting assets across risk buckets – this helped cushion retirees in time of market turmoil as we have seen repeatedly since launch in March 2021.
“By going further and integrating a Smoothed Fund within our managed buckets framework, we end up with a ‘double-smoothed’ approach.”
Lorna Whalley, commercial director of Aviva’s adviser platform, said: “We are delighted to see Elston leading innovation by incorporating the Aviva Smoothed Managed Fund into their Smoothed Retirement models, designed specifically for decumulation.
“Smoothed funds have a valuable role in helping to manage sequencing risk in retirement, and Elston’s Smoothed MPS provides advisers with a timely and differentiated solution in response to the regulator’s Thematic Review on Retirement Income Advice.”
