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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Baillie Gifford workforce faces 10% reduction following voluntary exit programme

Baillie Gifford workforce faces 10% reduction following voluntary exit programme

Around 160 roles vacated

clock 23 September 2026 • 1 min read
Nine SJP funds flagged for underperformance in AoV despite improvements on last year

Nine SJP funds flagged for underperformance in AoV despite improvements on last year

89% of assets given green light

Alex Sebastian
clock 22 September 2026 • 2 min read
The human advantage in an AI-powered asset management industry

The human advantage in an AI-powered asset management industry

'AI should be used to enhance, not replace, human engagement'

Apiramy Jeyarajah
clock 22 September 2026 • 5 min read