Distribution Technology increases global focus in risk models amid UK concerns

Considers new asset classes

Distribution Technology (DT), a provider of risk profiling tools to hundreds of adviser firms, has decreased the UK weightings across five risk profiles in favour of a more global approach, as Brexit and record low gilt yields render the UK less attractive for investors.

The firm has made adjustments to both the fixed income and equity allocations of five of its ten risk-rated Dynamic Planner portfolios as part of its annual rebalance, in an effort to provide investors with the opportunity to gain broader global exposure. Within fixed income, the firm has made a small shift of around two percentage points away from UK gilts into international bonds, which includes emerging market debt. Chris Fleming, DT's financial analytics director, said: "We wanted to give people using these asset allocations more flexibility to look for yield in overseas markets. ...