Jim Henning: Targeting risk head on

Risk-targeted funds

clock • 6 min read

Jim Henning considers the growing popularity of risk-targeted funds and how well they have so far navigated the current unusual market conditions to deliver consistent risk-adjusted outcomes

It comes as no surprise that we are seeing a growing number of advisory firms outsourcing fund selection to packaged multi-asset solutions to help drive their centralised investment process. The expectations of the regulator have been made clear in that advisory firms must continuously monitor portfolios to make sure risk is aligned to the customer mandates. This is not exactly new from a UK adviser perspective - although, given this backdrop, the cold, hard reality of fund research overheads involved when constructing build-your-own portfolios is increasingly biting. Furthermore, the se...

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