Retirement
Investing.
Combining the power of advice with the art of investing.
Pension freedoms changed the retirement journey. More clients now remain invested, drawing income while relying on their portfolio to support long-term financial independence. That creates a different investment challenge: balancing income today, growth for tomorrow and risk throughout the journey. Our retirement proposition gives advisers three discretionary solutions built around that challenge.
The risks retirement investing must manage.
Spending, market returns and longevity are closely linked. Small differences in timing or decision-making can have lasting effects - which is why retirement portfolios need a more nuanced approach.
Longevity risk
The risk of money running out while it is still needed. Withdrawal rate, expected lifespan, inflation and returns all need to stay in balance.
Inflation risk
Money buys less over time. At 2% inflation, £1 retains only about 82% of its value after 10 years and 55% after 30 - and most retirements last 20 to 30 years.
Sequencing risk
Poor returns early in retirement, when withdrawals are being made, can have a lasting impact. The order of returns matters, not just the average.
Combining the power of advice with the art of investing.
The adviser builds a financial plan that lasts. Binary Capital, as discretionary fund manager, turns that plan into a resilient, professionally managed portfolio.
Building a plan that lasts
A coordinated financial plan
Modelling how spending, returns, inflation and life expectancy affect income - bringing pensions, ISAs and savings into one clear plan.
Tax efficiency
Structuring withdrawals across pensions, ISAs and other assets to use allowances, manage pension limits and improve net income.
Behavioural discipline
Keeping clients focused on long-term goals through market noise, with pre-agreed rebalancing and cash-flow plans.
Adapting over time
Regular reviews, stress tests and scenario analysis to keep the plan robust as circumstances change.
Managing drawdown risk
Diversification
Combining assets with different drivers of return to reduce the scale and duration of drawdowns without sacrificing return potential.
Volatility control
Absolute return allocations adjust exposure to market conditions, smoothing returns and protecting capital during stress.
Sustainable income
A total-return focus - combining income and capital growth to fund withdrawals efficiently while preserving capital.
Cost and transparency
Low, transparent fees that compound positively over long horizons, with clear reporting on every holding.
The three-pillar approach.
The Binary Capital Retirement Range applies a distinct three-pillar approach - equities, fixed income and absolute returns - designed to deliver consistent, risk-adjusted returns. The strategies stay significantly invested in equities while allocating to absolute returns for risk management and control.
Our portfolios combine capital appreciation and income generation through a significant allocation to core equities, with a disciplined focus on downside protection through selective use of absolute return strategies.
Representative strategic allocation for the Retirement Range (%). Individual solutions vary.
Three ways to invest for retirement.
Each solution is built for a clear understanding of the realities of retirement investing in the decades ahead - not the assumptions of the past. All carry a 0.15% MPS charge.
Diversified Income
The Diversified Income MPS targets steady income and long-term growth through a total-return approach. Portfolios are diversified across global asset classes and managed within a disciplined, evidence-based framework that adapts to market conditions. We carefully select income-generating funds and investment trusts that prioritise quality, sustainability and resilience - each chosen to contribute to the income target while protecting capital over the long term.
Objectives
- Preserve and grow capital with a total-return approach to investing.
- Generate a reliable income while pursuing additional long-term capital growth.
- Aim for a consistent and sustainable 4+% net yield - around the level research supports as a sustainable withdrawal rate.
- Outperform inflation over the long term.
Ideal CRP role
Gilt Model
The Gilt Model Portfolio Service provides transparent, low-cost access to UK government bonds, managed directly on platform for individual clients. Portfolios are built using laddered or bulleted gilt structures - laddered to balance yield and reinvestment risk across maturities, bulleted to target a single date that aligns with a known cash-flow need. Every portfolio is bespoke to the client, constructed with gilts and actively managed within a discretionary framework.
Objectives
- Preserve capital using UK government bonds.
- Outperform inflation while reducing uncertainty around outcomes.
- Deliver defined outcomes with precision, aligned to known cash-flow needs.
Ideal CRP role
Safe
UK government bonds, rated AA.
Tax efficient
Capital gains on direct gilts are exempt from UK tax; a low-coupon bias shields most of the return.
Low volatility
Short time to maturity means prices stay very stable relative to other bonds and equities.
Accessible
No minimum investment and no lock-up period.
Targeted Returns
Targeted Returns is a multi-asset range that seeks to generate single-digit returns over a five-year investment cycle, irrespective of the market environment. It is outcome-focused - return generation, capital preservation and downside risk management through flexible asset allocation and significant exposure to absolute return funds to smooth volatility. The range takes a pragmatic approach to equity investing while maintaining a large degree of uncorrelated exposure to manage risk when markets are volatile.
Objectives
- Minimise absolute drawdowns through significant allocation to absolute return funds.
- Achieve capital growth with lower day-to-day swings in price.
- Achieve better risk-adjusted returns than the peer-group benchmark over 3–5 year rolling periods.
- Outperform inflation across defined volatility and equity-risk ranges.
