We adapted our Drawdown Control solution (DARM, Dynamic Asset Risk Management) that allows investors to maximise their performance while taking into account their risk constraints, to the requirements of retirement savings.
In an environment where bonds offer returns that are no longer attractive, our Lifestyle solution is a response to growing demand for savings products exposed to risky assets, but with an efficient risk control.
It offers an alternative to current models of de-risking, which principle is hazardous when the risk-free asset is no longer risk-free.
This solution relies on the utilisation of several risk-controlled portfolios (DARMs), with different levels of risk. The capital is distributed among these portfolios by a desensitisation that is no longer time-linked, but designed to progressively lock-in gains.
The solution is flexible (investment universe, allocation constraints and levels of risk are chosen by the investor) and dynamic.