Parmenion Passive Drawdown
Our dedicated drawdown solution, designed to dampen risk in falling markets, whilst maintaining exposure to potential capital growth in rising ones.
- The content of this page is only suitable regulated financial advisers.
- Past performance isn't an indicator of future returns and investors could get back less than they put in.
- This content of this page is intended as general information and shouldn't be viewed as a personal recommendation.
- There's also no guarantee that investment solution or funds will meet their objectives.
Built to solve the retirement conundrum
Drawdown is very different to accumulation and demands a different approach to investing. Equity powered growth is needed to help a portfolio last as long as possible. But a market downturn can have a lasting effect on your client’s retirement plans. Add the fact that life expectancy is only increasing, and the survivability of their retirement pot could be under serious pressure. We call this the 'retirement conundrum', and this is where Passive Drawdown comes into its own.
Why choose Passive Drawdown?
Dedicated retirement
solution
A dedicated retirement solution with a distinct investment approach for clients who want their savings to provide an income throughout retirement.
Harnesses market volatility
A volatility component insulates performance in falling markets, to reduce the risk of the portfolio suffering a large drop in value.
Supports long term drawdown income
Focuses on maintaining the portfolio’s ability to sustain withdrawals for as long as possible by mitigating sequencing and longevity risks.
Prioritises passive funds
The solution prioritises the use of passive funds where possible, to keep costs as low as possible.
Aims to capture growth in rising markets
Invests in a wide universe of asset classes and geographical regions to capture growth when markets are rising.
Available in 10 risk grades
Choose from 10 risk-grades to match your investment objectives, appetite for risk and time horizon.
Costs and charges
Our Passive Drawdown charges are simple and transparent. For our custody fee, when the total value of your client’s assets falls into a given band, they pay that charge for all their money, not just the proportion in that band.
| Type | Charge |
|---|---|
| DFM charge | 0.12% |
| Dealing charge (for fund switches and rebalance purchases) | 0.45% (≈0.05% p.a.)* |
| Parmenion SIPP charge | £18+VAT per quarter |
*Assumes a 12% turnover rate - for guidance only, actual turnover may be more or less than this amount
| Custody band† | Charge |
|---|---|
| £0 - £299,999.99 | 0.30% |
| £300,000.00 - £599,999.99 | 0.25% |
| £600,000.00 - £1,499,999.99 | 0.20% |
| £1,500,000.00 + | 0.15% |
†A minimum monthly custody charge of £5 per client applies. Cliff edge structure.
Here’s what your client might pay
For a £500,000 portfolio in Risk Grade 5, and an OCF as of the 31st March 2025.
| Custody | DFM Charge | Dealing* | OCF | Total |
|---|---|---|---|---|
| 0.25% | 0.12% | 0.05% | 0.27% | 0.69% |
*Assuming a 12% turnover rate - for guidance only, actual turnover may be more or less than this amount
Solution resources
