Discretionary investment management firm PortfolioMetrix has launched a range of risk-controlled model portfolios in the UK in response to demand from advisers.
The core PortfolioMetrix offering, first launched in 2013, provides investment portfolios that offer the flexibility to be customised by advisers to meet the specific goals and requirements of their clients. The new PortfolioMetrix Select service offers seven off-the shelf options, designed to meet pre-determined risk appetites.
The Select range is available via 10 of the UK’s leading platforms: AEGON, Alliance Trust Savings, Fidelity FundsNetwork, Nucleus, Praemium, Seven Investment Management, Standard Life, Transact, Wealthtime and Zurich.
The range reflects the firm’s strong focus on risk and is designed to keep the portfolios as closely aligned to their risk ratings as possible. Research carried out by PortfolioMetrix shows that some leading model portfolio ranges either deviate from their risk mandates or provide returns inconsistent with the risk taken, both of which expose advisers and clients to investment suitability risk.
Dave Chessell, Distribution Director at PortfolioMetrix UK comments: “Advisers want to have confidence that the investment portfolios they recommend adhere to the risk budgets they’ve established with clients and are positioned to deliver on agreed financial goals. When scrutinised, it’s clear that some model portfolios fail to match this expectation. Our approach is highly risk focused and our track record shows we have out-performed industry benchmarks over the four years we’ve been operating in the UK. Our Select range gives advisers access to this approach, and gives them the option of a set of models that can deliver against their clients’ risk expectations.”