Schroders launches risk-targeted funds

Schroders launches risk-targeted funds

Schroders has partnered with Distribution Technology to launch five risk-targeted funds.

The Schroder Dynamic Planner Portfolios have been designed to enable advisers to risk profile their clients and select investment solutions suitable for their clients. 

They target Dynamic Planner risk profiles from level three to seven and have been specifically designed to remain within the volatility parameters of each level. 

The portfolios are managed by Schroders’ multi-manager team, led by Marcus Brookes, and are available through a number of different platforms.

His team researches an investment universe of more than 5,000 funds, aiming to select the best combination of products from leading fund managers across equity, bond and alternative asset classes on a global basis. 

The team will make tactical asset allocation decisions while operating within the Dynamic Planner risk profile, meaning clients' money will always be aligned to their risk profile.

The portfolios will have an ongoing charge of 0.99 per cent and will be available on a wide range of UK adviser platforms.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said the risk-rated and risk-targeted sectors are growing at quite a clip, largely because of the convenience of marrying up funds and clients which both have the same risk score. 

But he said these models do tend to condense risk to a single figure, which is an oversimplification, and the potential pitfall is that this is seen as a shortcut for understanding what a fund does and how it can be expected to perform.