The GBP220m Allium Capital FP multi asset DRP fund range has been added as the lowest cost solution to the ‘Risk Target Managed’ service by Distribution Technology (DT).
DT announced last week the launch of its new ‘Risk Target Managed’ service, specifically designed to help users of Dynamic Planner in their selection process for suitable investment solutions.
The Allium Capital FP multi asset DRP fund range has an Ongoing Charge Fee (OCF) of 0.24% and across the range has seen strong returns relative to the peer group, boosted by Indexx Markets’ simplified implementation methodology.
The DRP Funds are a range of six Distribution Technology core asset allocation portfolios that seek to provide a suitable mix of assets at an appropriate level of risk for various types of investors. Each fund aims to deliver its set objective whilst remaining within its defined volatility band. Asset allocation is reviewed quarterly by Distribution Technology with the aim of providing the investor with the optimised return for their desired level of risk.
The range has been designed to give asset managers and investors a daily representative benchmark, and are based on Distribution Technology’s six most popular risk profiles.
The main aim of risk targeted funds is to only expose investors to a specified, and constant, level of risk. This compares to risk rated, which assigns a risk number to a fund based on a ‘snapshot' of its potential level of volatility, that is not guaranteed and is liable to change.
“Risk targeted funds are growing in popularity and fulfil the suitability guidelines set out by the regulator. Post the Retail Distribution Review (RDR) advisers are looking at returns in the context of the level of assumed risk and asking whether it corresponds with what their clients can expect to achieve. This obviously differs from the traditional method of risk rating funds which can inadvertently expose investors to more risk than they are comfortable with,” says James d’Ath, Director at Indexx Markets, the company behind the Allium Capital fund range.