Copia Capital Management has launched five risk-rated portfolios to address decumulation risks and help advisers meet the new Consumer Duty rule to, “avoid causing foreseeable harm.”

The Copia Select Retirement Income Plus (RI+) portfolios use guaranteed income alongside a managed portfolio.

The company said the range is designed to address four main decumulation risks: sequencing, longevity, inflation and interest rate.

It claims that RI+ is the first decumulation portfolio strategy purpose-built to work in conjunction with a guaranteed income solution, delivered by Just Group’s Secure Lifetime Income.

Copia’s investment team produces a complementary proposition to the guaranteed income solution to offer investors in drawdown some protection against the effects of what it calls “pound cost ravaging.”

Robert Vaudry, managing director of Copia, said: “People in drawdown have had a stark reminder of the risks facing their income over the last few months.

“Market volatility has meant many in decumulation have had to continue taking an income during unfavourable market conditions, while the cost of living crisis is eroding the spending power of retirement savings and increasing the possibility of people running out of money sooner than required.

“At the same time, central bank efforts to quell inflation through interest rate rises are hitting bond capital values, adding further uncertainty to investment outcomes.”

He said decumulation requires a different investment approach to accumulation and yet many advisers use the same portfolio ranges for both objectives.

Paul Turner, managing director, retail of Just Group, said: “The Financial Conduct Authority’s thematic review of retirement income advice will surely conclude that a different approach is required for people approaching and in-retirement compared to people in the accumulation phase.

“Using our fixed income guaranteed asset class alongside a managed portfolio is an innovative way to optimise asset allocation in retirement income portfolios.”