The rise of risk-targeted funds

Every now and again, something comes along in our industry that changes the way we think, we operate or indeed invest. In recent years, we have seen the use of model portfolios come to the fore among advisers, as they look to consolidate their investment proposition. This looks set to continue with the implementation of Retail Distribution Review (RDR). At the same time, risk-targeted funds have massively grown in popularity, probably becoming the fastest-growing segment of investing in 2011. More than £6.5bn is now invested in funds that either target risk explicitly or have some kin...