Scottish Widows launches four multi-asset drawdown funds

'Dynamic volatility management'

Scottish Widows has launched a range of low-cost multi-asset funds for clients who plan to stay invested during retirement and withdraw money using income drawdown through the group's Retirement Account.

The four Retirement Portfolio funds are designed to reduce the risk of capital losses for drawdown customers during volatile markets by using a 'dynamic volatility management' (DVM) process that maintains exposure to equity growth opportunities unless volatility becomes significant - at which point exposure is reduced temporarily. Scottish Widows head of fund proposition Iain McGowan said: "Since the introduction of pension freedom, an increasing number of customers stay invested during retirement and withdraw money using income drawdown. "They need an appropriate investment strategy ...