Worth the risk

By adopting this low maintenance approach, the benefit for advisers is the potential to be more productive than before and better equipped to add value to their clients. Risk profile products offer advisers a clear alternative which can considerably reduce the costs and avoid risks of establishing their own model portfolios.

The risk profile approach will gain more traction as it ensures that advisers retain the pivotal role of reassessing the appropriate risk profile of the client as his circumstances change over time. Traditional multi-manager funds have seen strong take-up with advisers but if the US experience is anything to go by, risk-profile driven funds represent the next generation of retail multi-manager products.

John Yule is head of UK Retail at F&C Investments