To risk rate or not to risk rate?

Adrian Gaspar, senior consultant at Defaqto, on how to run due diligence across risk rated and multi-manager funds

clock • 5 min read

Adrian Gaspar, senior consultant at Defaqto, on how to run due diligence across risk rated and multi-manager funds.

A topical theme in the IFA market currently is the challenge of matching ‘managed investment solutions' to a client's risk profile. There are several ways of offering managed solutions including discretionary fund management services and model portfolios. We are focusing here on risk rated funds (many of which are multi-manager and designed to map to output from risk tolerance questionnaires) and multi-manager funds (that are not risk rated) in two key areas: comparing what benefits each approach potentially offers advisers and clients, and the key areas of due diligence for each to e...

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