A perfect storm for risk-rated funds?

For months now, in the build-up to the end of year RDR deadline, fund providers have been anxious to tap into adviser and client demand for risk-rated, multi-asset portfolios.

On paper, the vehicles appear to promise some kind of simplified scenario, where the adviser establishes a risk profile for a client and then matches this to a particular portfolio. However, what is becoming increasingly clear to providers, advisers and now the regulator is this approach is far from clear cut. Instead of creating a simplified solution, it is adding an extra layer of complexity and confusion. For providers, the challenge is to make their risk-profile solutions work effectively for advisers, as well as help them navigate the plethora of options available. It is likel...