Radiant Financial Group has launched its investment management offering Radiant Asset Management (RAM).
This comes just as Radiant Financial Group recently hit over £1.3bn ($1.6bn, €1.5bn) in assets under advice when it completed its sixth deal of 2022.
RAM is “designed to be radically different from traditional discretionary fund managers, as it is based directly on the feedback from financial planners and IFAs on what they want to see from a DFM”, the firm said.
The investment strategies offered will be more heavily focused on capital preservation.
RAM offers seven model portfolios (MPS) separated into two distinct ranges, protect and grow. Its three protect portfolios are designed to protect against losses, while working towards a steady level of growth. It’s four grow portfolios are designed to steadily grow assets and ultimately deliver better risk-adjusted returns.
Minesh Gajjar has been named as managing director and chief investment officer of RAM.
He was previously global head of discretionary and managed solutions for wealth management at HSBC.
Alain Kerneis has been appointed the independent chair of Radiant Asset Management’s investment oversight committee, which maintains oversight of Radiant Asset Management’s investment operations.
He was previously co-head of investments for BlackRock client portfolio solutions.
Gajjar said: “The current obsession with meeting benchmarks means many DFMs are ‘content’ for their funds to make big losses if everyone else is making those losses. Not surprisingly clients don’t see it that way.
“We take responsibility for managing a customer’s wealth very seriously and see it as a privilege to be given the opportunity to help deliver on customers financial and life goals. In turn, we see ourselves as stewards of a client’s wealth.
“Aligned with financial planning, investment management must also consider customers financial goals and understand how investment models can help deliver or destroy them. We must seek to align our investment objectives with those of the customer and not relative to that of our peers or a comparative benchmark.
“Clients want their investments to steadily grow but the feedback I’ve got throughout my two decades of working with IFAs is customers feel that capital preservation has been ignored. Most customers are happy to trade off some of the growth potential in their investments in order to avoid big losses. The average DFM ignores that.
“It’s in markets like this that the problem over the lack of downside protection is really exposed. We at RAM fully understand that the real risk for clients is the failure to achieve their financial and life goals. This led to the creation of models which focus on preserving clients’ wealth whilst still providing stable and sustainable returns across a variety of market environments.”