Sparrows Capital and Just Group have partnered to launch a retirement income solution called SCore-D.
The evidence-based model portfolio service (MPS) provider said SCore-D will help advisers navigate the financial risks their individual clients may face in decumulation.
Sparrows added the solution combines market portfolios with a guaranteed income-producing asset, with analysis showing that this combination can “reduce sequence risk while allowing continued exposure to markets”.
Additionally, this approach can increase the sustainability of income while still allowing clients to access potential market growth.
Sparrows Capital head of adviser proposition John Bennett said: “This game changing proposition addresses a dearth of safe solutions to the decumulation dilemma.
“It leverages the benefits of two excellent products to address the individual needs of end clients as they look to secure a sustainable income in retirement. SCore-D is an essential tool for advisers.”
Just Group head of retail investment solutions Stuart Slegg added: “This is a very exciting venture for Just as we continue to focus on disrupting the market to improve customer outcomes.
“Just’s guaranteed income producing asset, delivered through our pioneering Secure Lifetime Income solution, combined with SCore’s investment ethos and proven capability, will offer customers innovative and unparalleled solutions to meet their retirement needs.”
In November 2023, Sparrows Capital head of compliance David Ogden told Money Marketing “confidence is key” for advisers when it comes to selecting an MPS.
From a Consumer Duty perspective, Ogden believes the Financial Conduct Authority is looking for confidence that advisers believe in the MPS they place clients in.
Ogden also described financial advice as “complex”, but said an MPS can simplify matters outside of a planner’s control.
Although Sparrows Capital deals with financial advisers rather than the end client through its MPS, it still tries to keep things as simple as possible, Ogden said.
He added: “There is some necessary jargon, but it does not have to be over complex.”
In 2020, Sparrows Capital launched its SCore MPS, which offers a suite of three ranges – factor, market and responsible.
The SCore MPS is available on 13 platforms and is risk rated by Defaqto.
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