Governed Retirement Income Portfolios (GRIPs)

An investment proposition designed to deliver a sustainable retirement income for your drawdown clients.

All about GRIPS

There are five portfolios, each aligned to a different level of risk, so you can tailor your choice to each client's attitude to risk.

All of the portfolios are actively managed by the Multi Asset team at Royal London Asset Management and are set up to balance the different risks that could affect retirement income sustainability:

  • volatility
  • downside risk
  • inflation
  • sequencing risk
  • longevity risk

Including a diverse range of asset classes helps improve the resilience of the portfolios to market shocks and downturns as different assets perform better at different times and at different stages of the economic cycle.

The portfolios also hold assets that can help act as a hedge against inflation, such as commodities. Asset allocations vary across the five portfolios to reflect the different risk profiles, with the aim of maximising returns for each level of risk.

Here are the current strategic asset allocations:

 

  GRIP 1 GRIP 2 GRIP 3 GRIP 4 GRIP 5
Equity 12.50% 22.50% 30.00% 40.00% 50.00%
Property 5.00% 7.50% 7.50% 10.00% 10.00%
Commodities 5.00% 5.00% 5.00% 5.00% 5.00%
Global High Yield Bonds 5.00% 5.00% 5.00% 6.25% 6.25%
UK High Yield Bonds 5.00% 5.00% 5.00% 6.25% 6.25%
UK Corporate Bonds 14.00% 13.00% 10.00% 7.25% 4.00%
Global Corporate Bonds 4.00% 3.50% 3.25% 2.00% 2.00%
Short Duration UK Corporate Bonds 4.50% 4.50% 3.00% 2.00% 1.50%
UK Index Linked 5.00% 5.00% 5.00% 3.75% 2.50%
Short Duration UK Index Linked 1.50% 0.75% 0.75% 0.00% 0.00%
Short Duration Global Index Linked 3.50% 1.75% 1.75% 0.00% 0.00%
UK Government Bonds 10.00% 10.00% 9.75% 5.00% 4.00%
Global Government Bonds 4.00% 3.75% 2.50% 2.50% 1.00%
Short Duration UK Government Bonds 11.00% 2.75% 1.50% 0.00% 0.00%
Absolute Return Strategies (including Cash) 10.00% 10.00% 10.00% 10.00% 7.50%

 

Benefits of the Governed Retirement Income Portfolios

  • Resilient investment solutions to help deliver a sustainable retirement income
  • Independent governance and oversight at no extra cost
  • Responsible investment approach built in
  • Option to change the equity fund element of the portfolios
  • £7.1 billion invested in the portfolios (as at December 2023)

Confidently recommend GRIPs to your clients

If you're thinking of recommending the portfolios to your clients, here's some content you can use to strengthen your suitability and due diligence process.