Wealth firm Rowan Dartington has launched four model portfolios underpinned by a risk monitoring process which puts security risk centre-stage.
The 4D (four dimensional) offering, available to both its adviser-managed and discretionary-managed clients, combines groups of securities - including equities, bonds and funds - to build portfolios within client agreed risk limits.
Rowan Dartington's Portfolio Management System (PMS) then monitors the portfolios in four dimensions - security risk, portfolio risk, asset allocation risk and geographical positioning.
The firm said the key difference with the 4D strategy compared with traditional asset allocation approaches is the fact security risk comes first - rather than asset class risk.
It added the process acknowledges that, rather than asset classes being risk-rated together, there are significant variables within each asset class such as liquidity and volatility.
"We believe the future direction of portfolio construction will still focus on asset allocation, but that it should be secondary to security risk," said Rowan Dartington chief investment officer Guy Stephens.
"We feel this is an innovative offering to the IFA sector and direct clients alike and our proprietary portfolio management system enables us to deliver this to the end client."
Pain thresholds key
To communicate equity release's wider opportunities and benefits, writes Chris Flowers, providers and advisers need to think about how best to engage not only its usual target audience but also their families
What made financial headlines over the weekend?
Havensrock Thrive App
Don’t ‘leave it all on the pitch’