Dynamic Planner brings investment trusts into risk profiling service
Seneca Global Income & Growth Trust first to be included
Dynamic Planner has expanded its risk profiling service to include investment trusts for the first time as it seeks to enable consistency in assessing suitability regardless of the investment vehicle.
Seneca Global Income & Growth Trust is the first to be included in the service and has been assigned a Dynamic Planner Risk Profile score of seven out of a maximum possible ten.
Dynamic Planner's Chatterjee: Navigating the 'tidal wave' of fiscal policy
To date, the firm provides risk profiles for over 1,400 model portfolios and open-ended funds, and as the service expands across the investment trust universe, it hopes to provide advisers with a "consistency of approach", whether they are assessing the suitability of an OEIC or investment trust.
Nick Britton, head of intermediary communications at the AIC, said the inclusion of investment trusts in Dynamic Planner's risk profiling service would help to "break down barriers" for financial advisers seeking to invest in the space and added that it was an "encouraging sign" to spur the "wider adoption of investment trusts among financial advisers".
Chris Jones, proposition director at Dynamic Planner, said: "Investment trusts are the investment vehicle of choice for many investors, and while choice is all important, we believe it is also vital to maintain a consistency of approach when assessing suitable investment solutions.
"We are delighted to welcome the Seneca Global Income & Growth Trust plc to Dynamic Planner. We have conducted in-depth analysis of the underlying holdings of the trust, looking back over a period of several months.
"By utilising our in-house research which now spans over 25,000 individual securities, we calibrated the trust's holdings to our latest capital market assumptions, thereby enabling us to assess its expected volatility journey."
David Thomas, chief executive of Seneca Investment Managers, added: "We were keen to have this analysis undertaken, since Dynamic Planner has provided formal risk profiling oversight of our similar open-ended multi-asset funds for a number of years.
"We are very comfortable with their rigorous process and saw no reason to exclude the trust just because it was closed-ended, given its inherent multi-asset diversification and the tight board control over the level of gearing applied to the underlying assets."
More on Investment Trusts
Most read
