Discretionary investment manager PortfolioMetrix has launched a range of seven 'risk-controlled' model portfolios in response to adviser demand.
PortfolioMetrix said its new ‘Select' range of seven "off-the-shelf" model portfolios has been designed to meet predetermined risk appetites and keep the portfolios as closely aligned as possible to their assigned risk ratings.
The firm added it created the range following its own research, which suggested some leading model portfolio offerings either deviate from their risk mandates or provide returns inconsistent with the risk taken. It argued this could expose advisers and clients to investment suitability risk.
Distribution director Dave Chessell (pictured) said: "Advisers want to have confidence the portfolios they recommend adhere to the risk budgets they have established with clients and deliver on the agreed financial goals.
"When scrutinised, it is clear some model portfolios fail to match this expectation."
The portfolios are available on 10 investment platforms - Aegon, Alliance Trust Savings, Fidelity FundsNetwork, Nucleus, Praemium, Seven Investment Management, Standard Life, Transact, Wealthtime and Zurich.
The firm's core offering of customised portfolios was first launched in 2013 to offer advisers flexibility which it said can be missed out of model portfolio construction.
PortfolioMetrix managing director head of innovation Mike Roberts has previously argued in a column for Professional Adviser that using tools grounded in behavioural finance to manage ‘insistent clients' can more realistically gauge their appetite for risk and mitigate the dangers of misselling.
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