Our GRIPs turn 5

Our GRIPs have shown their resilience. They’ve coped with five-years of market ups and downs, including China devaluations, Brexit and the US elections.

And they’ve outperformed their benchmark, captured market upside and helped customers take a sustainable income from their pension. 

5 reasons for clients to invest:

  1. 5 risk-targeted portfolios designed for taking regular income
  2. 5 years of robust performance
  3. A diversified mix of assets
  4. Managed by Royal London Asset Management (RLAM)
  5. Ongoing and independent governance

Plenty to celebrate

“We’re celebrating a very special birthday this year... our Governed Retirement Income Portfolios turn five!

Back in 2012, when our quintet of five GRIPs first arrived... They were one of the first Centralised Investment Propositions designed exclusively for clients looking to take a sustainable income from their pension

The GRIPS are designed to be resilient, and in challenging market conditions they are able to cope with the ups and downs of market behaviour such as China devaluations, Brexit and the US elections.

And all five have outperformed against their benchmark over five years delivering an average of between 5.6 and 10.7% per annum. All within a risk controlled framework.

So, we have plenty to celebrate. For clients, GRIPs offer: governance at no extra cost; automatic monthly rebalancing; robust risk management; automatic updates to the asset mix; and easy online access.

There’s a choice of five, risk-targeted portfolios designed for regular income and managing downside risks. There’s a diversified mix of equities, bonds and property funds... and a value-for-money mix of passive and active strategies within each portfolio.

Our dynamic asset allocation overlay is managed by the Royal London Asset Management team. Our experts review it regularly and this provides clients with the confidence of ongoing and independent governance.

And to help quickly and clearly assess the impact of drawdown on income sustainability, advisers can also access a range of tools, including our Drawdown Governance Service.

This isn’t the end of the story: our GRIPS are all set to go places in the future.

We’re committed to building on our track record and always striving to improve returns for your clients.

Join the celebrations! To find out more about our Governed Retirement Income Portfolios please speak to your usual Royal London contact.”


5 years of resilience

We’ve now reached the five-year track record for the five GRIPs. Now, this coincides with an extremely uncertain period within investment markets. At times throughout the five years, we have been touching historical low levels of market volatility, but what we have also seen a series of significant market downside risk events. This includes the fallout from Brexit the US election, the devaluation of the Chinese currency and a whole host of geopolitical risk factors. We’re absolutely delighted with how resilient the GRIPs have behaved over this five-year period and also the performance returns that the five portfolios have generated.

The five GRIPs have delivered an average return of between 5.6% and 10.7% per annum, and that’s net of a 1.00% charge. In addition, they have also outperformed their respective benchmarks and operated within their tactical risk budgets.

Q) Why have they performed so well?

The GRIPs are designed to behave in a resilient manner. Now, because they are for customers taking money out of their pensions, as opposed to putting money in, we think about risk and asset allocation very differently. Over the last five years the GRIPs have not only behaved in a resilient manner throughout these downside risk events but they have also managed to capture a significant level of market upside and that’s been generated through a diversified mix of assets, generating the right level of growth and delivering sustainable regular income.

The GRIPs now have a very robust track record. Advisers and customers alike can be very confident about using the GRIPs as a mechanism for delivering regular, sustainable income. Resilient, dynamic and representing true value for money, we believe that the GRIPs are the ultimate investment solution for your clients’ drawdown needs.

Annual income level
Name£4,000£4,500£5,000£5,500 £6,000 
ABI Mixed Investment 20%-60% Shares - pen £114,973.11 £112,029.89  £109,086.66  £106,144.14 £103,200.91
GRIP 1 £108,114.55  £105,214.58  £102,314.62  £99,415.35 £96,515.38
GRIP 2 £116,377.86  £113,389.52  £110,401.18  £107,413.56 £104,425.22
GRIP 3 £125,122.91  £122,042.81  £118,962.71  £115,883.35 £112,803.25
GRIP 4 £134,969.64  £131,795.97  £128,622.31  £125,449.40 £122,275.74
GRIP 5 £140,771.03  £137,541.81  £134,312.60  £131,084.16 £127,854.95

This data shows the GRIPs’ track record in generating different levels of sustainable income in challenging market conditions. 

Source: Lipper, 29/08/2017
Past performance is not a guide to the future. Prices can go down as well as up. Investment returns may fluctuate and are not guaranteed so you could get back less than the amount paid in.

A gripping five-year performance 

Lorna Blyth, Investment Strategy Manager reflects on five years of GRIPs.

See GRIPs in action

Speak to your usual Royal London contact to book a personalised demo today.


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