T Bailey gets three funds risk rated
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T Bailey has had three of its funds risk rated by risk-profiling specialist Distribution Technology.
The multi-manager business has had its £158.7m Growth fund, £25.6m Dynamic Cautious Managed fund and £15.2m Defensive Cautious Managed fund rated.
Growth has been given a rating of 7, or highest medium risk, Dynamic has been rated 5, or low medium risk, and Defensive has been given a rating of 3, or low risk.
The funds have also been added to Distribution Technology’s Dynamic Planner risk-profiling application.
The announcement follows the recent publication of the FSA’s ‘Assessing suitability: Replacement business and centralised investment propositions’ consultation.
The document warned advisers to have robust processes in place to ensure the suitability of investments recommended to clients.
T Bailey said the risk-profiling of its funds on Dynamic Planner will assist advisers in matching a client’s risk appetite to a suitable fund and in demonstrating this has been done.
Sebastian Ladimeji, sales manager, UK strategic partners, said: “As a fund house we at T Bailey value very highly our relationships with advisers and we understand the value to them of the risk-profiling of funds, so this was a logical step for us.”
The trend of multi-managers having funds risk rated has grown in recent months as fund houses view it as important in terms of communicating to investors.
Last month Aberdeen Asset Management’s multi-manager team had four of its funds rated by Distribution Technology while multi-manager boutique Blacksquare launched three new vehicles alongside its existing fund and had the range risk-rated by Distribution Technology.
Other multi-manager ranges Distribution Technology has worked include Apollo Multi Asset Management, Standard Life Investments’ MyFolio range and Seven Investment Management.