Risk Target Managed Solutions

Ensuring suitability is a key part of any advised ongoing service proposition. Our Risk Target Managed solutions are designed to help you deliver that service at lower cost against tried and tested risk profiles that deliver.

The FSA Guidance Paper on Centralised Investment Propositions (CIPs) includes details on advisers’ responsibilities for ensuring that a portfolio remains in line with an agreed risk profile. This includes ensuring that:

  • Risk-rated portfolios align accurately with the risk descriptions and outputs from any risk profiling tool employed
  • It has a robust review process to review each portfolio to mitigate the risk of portfolio drift

Our promise

Our promise is to provide an independent quarterly oversight service for asset managers to manage funds or portfolios against the following 5 commitments, which we check quarterly:

  1. Expected volatility is targeted to stay within the boundaries assigned to each Dynamic Planner risk profile; and/or
  2. Targets the strategic asset allocations for the respective Dynamic Planner risk profile
  3. Offer suitably diversified exposure (either directly or synthetically) to at least 6 asset classes included within the respective Dynamic Planner strategic asset allocations
  4. The underlying asset class exposure is managed in a suitably diversified manner
  5. Derivative exposure is managed in the main for the purposes of efficient portfolio management whilst use of any other strategies may be considered and accepted/rejected by DT

While Risk Target Managed solutions do not guarantee a solution’s risk profile won’t change, any changes should be infrequent, significantly reducing the cost and risk of delivering your ongoing service.

We promise to update you on any necessary changes to a solution’s risk profile in the Portfolio Suitability Hub and also via our monthly newsletter.

Take a look at the leading asset managers below who offer these solutions. The details of funds are available from Dynamic Planner in the Portfolio Suitability Hub.

 

Dynamic Planner risk target managed fund logo - RTM 3 Dynamic Planner risk target managed fund logo - RTM 4 Dynamic Planner risk target managed fund logo - RTM 5

 

Dynamic Planner risk target managed fund logo - RTM 6 Dynamic Planner risk target managed fund logo - RTM 7 Dynamic Planner risk target managed fund logo - RTM 8