Graham Bentley: So how do you name your model portfolios?

Behaviours, animals or something else?

clock • 6 min read

It would be helpful to advisers and their clients if funds and model portfolios had some sort of common risk-grading system but, as Graham Bentley points out, we are currently a long way away from that being the case

What do you call your model portfolios? Do you use subjective human behaviours such as ‘Cautious', ‘Balanced', ‘Aggressive' … ‘Psychopathic'? Or do you prefer a zoomorphic approach, perhaps using degrees of cuddliness - ‘Bambi', ‘Baloo', ‘Banzai' or ‘Balrog'? The regulator is concerned that portfolio names may not reflect varying exposures to equities, clients thus finding themselves in portfolios that may hold greater risks of capital loss than they were led to expect. Yet this represents a fundamental misinterpretation of the issues. ‘Asset allocators' such as Distribution Technolog...

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