Dynamic Planner has for the first time expanded its risk profiling service to include investment trusts.
Marking the broadening of the range of investment vehicles analysed by Dynamic Planner, the first to be included is the Seneca Global Income & Growth Trust plc which has been assigned a Dynamic Planner Risk Profile 7 (out of a maximum possible scale of 10).
To date, Dynamic Planner risk profiles over 1,400 model portfolios and open-ended funds, with plans to further increase the investment trust universe available, advisers will soon be able to apply the same consistency of approach to assessing the suitability of different investment solutions – whether an OEIC or investment trust.
Commenting on the development, Dynamic Planner’s proposition director Chris Jones said: “Investment trusts are the investment vehicle of choice for many investors, and while choice is all important, we believe it’s also vital to maintain a consistency of approach when assessing suitable investment solutions.
“For over 17 years we have helped thousands of advisers understand the risk profile of thousands of model portfolios and open-ended funds. We can apply this same trusted model to assess the risk profile of investment trusts because we analyse all the risk characteristics of the underlying holdings of any solution.
“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. This process includes the evaluation of gearing on individual holdings and this was also carefully considered at the wrapper level for the Seneca Global Income & Growth Trust plc.”
Nick Britton, head of intermediary communications at the Association of Investment Companies (AIC) said: “As part of our ongoing education programme, we’ve trained thousands of financial advisers about investment trusts, and we’re keen to break down barriers to their wider use wherever possible.
“One of these barriers has been the lack of availability of risk-profiling for investment trusts, which many advisers have told us is essential to their research process. This news from Dynamic Planner is an encouraging sign that one more barrier to investment trust use is on the way to being removed, smoothing the path to wider adoption of investment trusts among financial advisers.”