Distribution Technology models 'catching up' after adding high yield

Distribution Technology (DT), a provider of risk profiling tools to hundreds of adviser firms, has introduced high yield bonds to eight of its ten risk models for the first time.

The change forms part of a quarterly review of the provider's asset allocation models, and was implemented earlier this month. Architas CIO Caspar Rock (pictured) said the move is a sign DT is "catching up" with other risk models and asset allocation services. More than 800 risk-rated funds are mapped to DT's ten ‘Dynamic Planner' risk profiles, with risk profile 1 representing the lowest risk portfolio and profile 10 the highest. Global high yield debt has been added to DT risk profiles 2-8, at allocations of 5%-6%, in a bid to improve diversification. DT has also added property t...