The process is available to advisory-managed and discretionary-managed clients through its private client business, as well as through its IFA investment management arm, Signature.
The new ‘4D’ process will categorise the securities (equities, bonds and funds) the company invests in by risk level and allow it to use these results to inform portfolio building.
Rowan Dartington said portfolios would be constructed with client-agreed risk limits and tolerances to deliver an outcome consistent with a client’s appetite and expectations.
The firm said the new process acknowledges that rather than asset classes being risk-rated together, there are significant variables within each asset class such as liquidity and volatility.
Using this way of profiling, Rowan Dartington’s portfolio management system then allows advisers to construct portfolios and monitor them across four dimensions: security risk, portfolio risk, asset allocation risk and geographical positioning.
Guy Stephens, chief investment officer at Rowan Dartington, said: "We believe the future direction of portfolio construction will still focus on asset allocation, but that it should be secondary to secruity risk. We feel this is an innovative offering to the IFA sector and direct clients alike and our proprietary portfolio managment system enables us to deliver this to the end client."
