Yes. Advisers can choose to set up a portfolio of funds using the Quilter asset allocations that are linked to the appropriate risk score, through the platform’s portfolio planning tool.
The Quilter asset allocator is designed to construct a portfolio with the highest mathematically-expected return for a given level of risk, based on the major asset classes. Optimising asset allocations for tax and charges within each tax wrapper is something that sets our portfolio planning tools apart from all other platforms in the market. They can also be optimised for the growth or yield investor.
The asset allocations are provided by Willis Towers Watson, a leading actuarial consultancy. They review the economic assumptions that underpin the asset allocations on a quarterly basis. If they recommend any changes these are communicated to all advisers in advance, with a rationale for the change included.
They are published on our website: quilter.com/investments/platform-funds/portfolio-construction/strategic-asset-allocations/latest-asset-allocation-quarterly-reviews/
The asset allocations are very flexible. Unlike most other platform portfolio planning tools, we enable a financial adviser to limit exposure to a particular asset class by setting minimum and maximum percentages for each asset class. In such cases, the portfolio planning tool will automatically re-calibrate the asset allocation to maintain the same level of risk. This facility allows financial advisers to include certain bespoke elements within an asset allocation whilst still being able to demonstrate that they have followed a robust investment process.
All portfolios built using an asset allocation decided by the adviser will also be given a corresponding risk rating from 1-10. Portfolios of funds within a client account and individual funds are also given a risk rating.