The first investment trust to be included is the Seneca Global Income & Growth Trust which was assigned a Dynamic Planner Risk Profile of 7 (out of a scale of ten).
Dynamic Planner plans to increase the number of investment trusts to be profiled so that Financial Planners can apply consistency of approach across different investment solutions.
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’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.”
The Association of Investment Companies welcomed the news.
Nick Britton, head of intermediary communications at the 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.”