The onset of the FSA's treating customers fairly (TCF) initiative will inevitably point advisers in the direction of risk-based funds, according to F&C.
The investment firm says the products, which are often termed ‘lifestyle’ or ‘lifecycle’ funds, “address a number of the concerns of regulators”. Risk-based funds involve advisers regularly reassessing the risk-profile of their clients as their circumstances, and those in the market, change, and adjusting their portfolios accordingly. “Risk-based funds enable advisers to address a number of the concerns of regulators in a very practical way that helps deliver a robust investment proposition to their clients, says John Yule, head of UK retail distribution at F&C. “In particular this inclu...
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