For those of you that use Defaqto as a risk rating tool, we are writing to provide you with an update on these ratings for our model portfolios, which have been amended to reflect Defaqto’s new approach to risk.

Defaqto have changed the risk levels for two of our Premier and two of our ESG portfolios. To clarify the changes the whole picture is set out below.
 
You will note that that the risk ratings for the Premier portfolios with a larger exposure to equities (Adventurous and Speculative) have increased. We think this is reasonable and reflects the true position of equity exposure and risk.
 
We are also pleased to note that two of our ESG portfolios (Defensive and Cautious) have been reduced in perceived risk. These ESG oriented portfolios are now in line with our Premier range reflecting lower risk attribution at the more cautious end of the spectrum, and we believe therefore representing TAM’s conservative long-term approach to cautious oriented clients.
 

Please be aware that these changes do not constitute a change in our investment approach, nor do they reflect a deterioration in performance or investment positioning. Instead, they are attributable to an alteration in the way that Defaqto have chosen to classify certain sectors in terms of their future and historic risk.

We welcome the increased level of granularity that we find within the new Defaqto risk-rating system and would like to reassure you that we continue to offer the same award-winning model portfolios, renowned for their quality active management, low-cost and diversification.

If you would like to speak with us about the third party risk ratings for our model portfolios and how these changes may impact the risk profile of your client’s investments, or simply to discuss our discretionary investment management services in general, please do not hesitate to get in touch.