Dynamic Planner has launched a new tool to help advisers make better-informed decisions about single-strategy fund selection on behalf of their clients.
Until now, the data for single strategy funds has been provided via third-party data vendors at a broad asset allocation level.
This differs from how data is provided for multi-asset solutions – directly from the fund manager at an instrument-holding level.
Through the precise mapping of instrument-level holdings data against Dynamic Planner’s risk factors and asset risk model, the new service aims to provide “greater accuracy” in the use of single strategy funds, with the same rigour as multi-asset solutions.
Dynamic Planner achieves this by sourcing single strategy fund holding data directly from fund providers, rather than via third parties at a broad asset allocation level.
This enables a level of granularity in selection that was not previously possible.
The team at Dynamic Planner will allocate the underlying holdings data received from the fund provider to an accurate combination of the 72 asset classes within its asset and risk model.
A new single strategy mapped (blue) badge will be used on funds that are part of the service.
With the increasing responsibility assigned to fund managers and how their funds are used through regulation such as Consumer Duty and PROD, Dynamic Planner is also able to support the different asset management models that are emerging as a result.
Dynamic Planner chief proposition officer Chris Jones said: “As financial markets have evolved and become more complex, we have ensured that we accurately analyse the underlying holdings of the solutions that we risk profile and map them to our risk factors within our trusted asset risk model.
“Dynamic Planner users who also build advised portfolios have asked for the same level of granularity and we are pleased to be able to support them with the single strategy mapped service.
“The new service will provide them with a level of granularity not previously possible, greater efficiency and accuracy, and all within one system with a consistent level of risk throughout.
“However you organise your business and decide to meet the needs of your clients, Dynamic Planner can support you.
“From a PROD and Consumer Duty perspective, the single strategy mapped service also enables the fund manager to more simply and clearly communicate whether a fund is intended to be distributed as a solution or part of a portfolio.
“Recent geopolitical events have raised the awareness and importance of things such as duration, cap size and location within a traditional asset class not only among our users, but also their clients.
“We hear that being able to view and discuss this using Dynamic Planner has been very helpful with solutions and we are pleased to support single strategy funds in the same way.”
