Ensuring investment suitability

There are two sides to ensuring investment suitability. Assessing your risk profile as an investor is one; the other is assessing the risk of your investments.investor model png

Launched in 2010, Dynamic Planner’s Fund Risk Profile (FRP) service is used by asset managers who want to have their own funds or model portfolios assessed and positioned relative to the 10 risk profiles used within Dynamic Planner.

This Fund Risk Profiling Service includes:

  • An analysis of the fund’s asset allocation (dating back at least three years, to assess both strategic and tactical historic asset allocations)
  • A review of the fund objective and investment mandate; where it can and cannot invest, and to what extent it can invest
  • A review of the historic performance of the fund (to determine the fund’s past volatility and to assess the asset manager’s past efficiencies in portfolio management)
  • An estimate of how the fund is likely to perform in the future relative to the target risk level asset allocation
  • A qualitative assessment by the Asset and Risk Modelling Team (where the members ‘sense check’ the results provided from all the quantitative processes above).

FUND_LOGO_PROFILED-05-1024x262Risk profiled funds are also eligible to use the appropriate Dynamic Planner Fund Risk Profile logo on their promotional material.

It is important to be aware that:

  • The FRP process is not an endorsement of the fund or portfolio’s future success or a buy ‘rating’, or a guarantee of an expected level of return, but a relative view of potential risk.
  • The FRP service cannot guarantee that a fund or portfolio’s actual risk profile will remain unchanged in future.
  • Other factors need to be considered as a part of the advice process.

This service initially risk profiles each fund or portfolio and then subsequently reviews it on a quarterly basis to ensure that the risk profile number remains appropriate.

There are two sides to ensuring investment suitability. Assessing your risk profile as an investor is one; the other is assessing the risk of your investments.investor model png

Launched in 2010, Dynamic Planner’s Fund Risk Profile (FRP) service is used by asset managers who want to have their own funds or model portfolios assessed and positioned relative to the 10 risk profiles used within Dynamic Planner.

This Fund Risk Profiling Service includes:

  • An analysis of the fund’s asset allocation (dating back at least three years, to assess both strategic and tactical historic asset allocations)
  • A review of the fund objective and investment mandate; where it can and cannot invest, and to what extent it can invest
  • A review of the historic performance of the fund (to determine the fund’s past volatility and to assess the asset manager’s past efficiencies in portfolio management)
  • An estimate of how the fund is likely to perform in the future relative to the target risk level asset allocation
  • A qualitative assessment by the Asset and Risk Modelling Team (where the members ‘sense check’ the results provided from all the quantitative processes above).

FUND_LOGO_PROFILED-05-1024x262Risk profiled funds are also eligible to use the appropriate Dynamic Planner Fund Risk Profile logo on their promotional material.

It is important to be aware that:

  • The FRP process is not an endorsement of the fund or portfolio’s future success or a buy ‘rating’, or a guarantee of an expected level of return, but a relative view of potential risk.
  • The FRP service cannot guarantee that a fund or portfolio’s actual risk profile will remain unchanged in future.
  • Other factors need to be considered as a part of the advice process.

This service initially risk profiles each fund or portfolio and then subsequently reviews it on a quarterly basis to ensure that the risk profile number remains appropriate.

Your financial planner can provide details of the risk profiled funds or portfolios that may be suitable for you.

 

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