Signature, the division of Rowan Dartington that provides discretionary management services to intermediaries, will roll out its hybrid portfolio service that will give intermediaries the choice of five risk-budgeted model portfolios that invest in both direct equities and collectives. Unlike most other model portfolio propositions, certainly in the UK, this service will provide a risk rating for the individual equities as well as the funds.
Trevor Cheal, business development director at Rowan Dartington, explained that different shares in the same sector, such as oil companies or the miners, could be rated differently so applying a security-specific risk process allows investors to more closely match their portfolio to their own risk profile.
He added this will also help to lower the TERs as clients who invest through the equities will save on the AMCs that the collectives ordinarily charge.
Mark Sevier is the firm’s head of equity research and he will look at stock-specific risk that includes political, liquidity, sector and geographical risk that can be used to then build a client’s portfolio.
The model portfolios will be across income, income & growth and growth variants that will also work with its recently launched 4D process that provides top-down analysis.
