Financial advisers work with clients at different life stages. In the third article of our series, we explore the story of Simon. He’s a finance director with a good knowledge of financial markets who’s looking for a flexible, actively managed investment strategy to support his retirement planning and family goals.
Case study: Simon – the strategic planner
Simon is a 50-year-old finance director with decades of experience in financial decision-making. He’s also a typical client for financial advisers: time-poor, financially savvy, and at a pivotal life stage.
He’s a high earner, but still has a £3,500 monthly mortgage and is beginning to plan seriously for retirement, so he’s increasingly focused on preserving and growing his wealth.
And his goals go beyond his own future. He’s considering how to support his two children with university tuition and a house deposit. He’s also mindful of potential long-term care needs for his elderly mother, and wants to maximise tax efficiency through ISAs and pension wrappers.
Faced with so many moving parts, he’s looking for a strategy that can adapt to changing conditions.
He’s not interested in a passive approach. Simon wants a portfolio that can hedge risks and capture opportunities; one that reflects his understanding of markets and his need for flexibility. He’s unsure exactly when he’ll retire, so locking into a less flexible strategy could mean missing out or taking unnecessary risks.
That’s why his adviser recommends MAF Plus: a multi-asset fund range that uses tactical asset allocation, active componentry, and sophisticated alternativesto respond to inflation, interest rate changes, and market shifts. Simon’s portfolio wouldn’t be static, but actively managed to optimise outcomes and protect against downside risk.
Investing with intent
Simon’s financial concerns reflect the complexity of his situation. He’s worried about inflation, market volatility, and maximising risk-adjusted returns. He wants to avoid being caught off guard.
His adviser suggests starting with MAF Plus III, which offers global diversification and the ability to tactically adjust to market conditions. It’s a strategy built for growth, but with professional oversight to manage downside risk. Over the next five to ten years, Simon plans to gradually transition to MAF Plus II, reducing risk as retirement approaches while maintaining exposure to long-term opportunities.
This glide path gives Simon the confidence to stay invested, knowing his portfolio will evolve with his needs. It also helps him avoid the trap of making reactive decisions during market downturns, which can be a common risk for clients approaching retirement.
Tax efficiency is another key part of Simon’s strategy. By using ISAs and pensions, he can grow his wealth in a tax-advantaged way while maintaining flexibility around withdrawals and retirement timing.
And while Simon values active management, he also wants to ensure he’s getting good value. MAF Plus offers competitive pricing for a professionally managed, globally diversified solution (see Figure 1).
Figure 1: MAF Plus range
This diagram is for illustrative purposes only, asset allocations are subject to change.
Note: Each fund targets a percentage of global equity volatility based on MSCI All Countries World Index.
Source: Aviva Investors, September 2025.
The impact of inflation
Simon is particularly concerned about inflation. Understanding how it affects his savings and investments is key for him to make informed decisions and plan confidently for the long term.
Figure 2 illustrates the decline in value of £100,000 over 30 years at different inflation rates. At one per cent inflation, the value drops by £25,807; at three per cent, by £59,801; and at five per cent, by £76,864.
Figure 2: The impact of inflation (£)
The information provided is for illustrative purposes only.
Source: Aviva Investors. Data as of September 30, 2025.
For Simon, the implications are significant. As the rate of inflation increases, the purchasing power of his money declines more rapidly, meaning his savings may not stretch as far in the future. Even low levels of inflation can make it harder for him to meet long-term goals like funding his children’s education or supporting his mother’s care. By choosing investments that actively respond to inflationary pressures, Simon can help safeguard the real value of his portfolio and stay on track toward his retirement and family objectives.
Alternatives can improve the risk-return profile
Simon’s other concern – about market volatility – mean traditional asset classes may not be enough. Historically, equities and bonds offered natural diversification – when one fell, the other often rose. But at points within recent years, that relationship has shifted. For example, in 2022, post-pandemic inflation surged, and equity-bond correlations changed.
Gold has historically performed well during inflationary periods and can act as a hedge against currency debasement
For Simon, this shift means relying solely on traditional diversification may no longer offer the protection he’s looking for. That’s why his adviser introduces alternative assets into the conversation. These include investments like infrastructure, real estate, private credit, hedge funds, and commodities – assets that behave differently from stocks and bonds and can help cushion the impact of market swings.
Gold, for example, has historically performed well during inflationary periods and can act as a hedge against currency debasement. By incorporating alternatives into his portfolio, Simon can potentially reduce volatility, improve long-term returns, and strengthen his overall risk-adjusted performance.
Although past performance is never a guarantee, the data so far backs this up. When alternatives have been added to a traditional 60/40 portfolio (represented by gold and an absolute return fund), the result has been lower volatility and a higher Sharpe Ratio – a key measure of how efficiently a portfolio generates returns relative to its risk (see Figure 3). For Simon, this means a more resilient investment strategy that’s better equipped to handle uncertainty and deliver on his long-term goals.
Figure 3: Adding alternatives to a 60/40 portfolio (per cent)
Past performance is not a reliable guide to future performance.
Source: Aviva Investors, Morningstar. Data as of August 31, 2025.
When it all falls into place
Simon’s story shows how multi-asset funds like MAF Plus can support clients at a strategic life stage, by offering active management, tactical flexibility, and a clear path toward retirement. For advisers, tools like MAF Plus help simplify complex conversations, giving clients confidence that their investments are aligned with their goals, risk appetite, and time horizon.
In the next part of this series, we’ll discuss Carol – a cautious investor approaching retirement – and her journey, and see how income-focused strategies like MAF Income can help clients transition with confidence and control.
