Investment Guidance Solutions LLC (IGS), a provider of portfolio construction solutions, today announced the launch of custom-built dynamic solutions for mutual fund fund-of-funds (FOFs), including the availability of IGS RiskScore™, a tailor-made risk management tool for driving dynamic asset allocation among mutual fund FOFs.
IGS’ suite of customized solutions allows portfolio managers to dynamically shift asset allocations to improve fund performance by allowing for greater principal protection in down markets and participation in up markets. These tools are especially relevant for lifecycle funds, such as target date funds and other mutual fund FOFs, because rather than employing a one-size-fits-all approach, they react dynamically to market conditions and do not base asset allocation solely on time-to-retirement.
Based on the proprietary technology of Newfound Research LLC, IGS RiskScore can be customized to address the specific needs of clients. The tool assigns the company’s flagship IGSignals TM “buy” and “sell” values for dynamic asset allocation to specific funds or asset classes to support the development of new products or to enhance existing products of its clients.
IGS also announced an agreement to license its new IGS RiskScore offering, as well as IGSignals, to independent broker/dealer and investment advisory firm, Investors Capital Corporation, for dynamic asset allocation within its wrap fee portfolios.“The launch of the IGS RiskScore is the next big step in our ongoing commitment to helping investors better secure their financial future,” said Phil Lussier, co-founder and CEO of Investment Guidance Solutions. “We are excited to partner with firms such as Investors Capital to help enable dynamic asset allocation within their product suite and provide portfolio managers with the critical data metrics they need to make informed investment decisions using repeatable tools.” “There is a need for dynamic solutions that allow our fund managers to actively assess fund allocation and make adjustments to portfolios that enable risk management and improve overall performance,” said Bart Liro, Manager of Advisory Services of Investors Capital Corporation. “IGS RiskScore and IGSignals give us the tools and data necessary to construct portfolios that reduce exposure to downside risk and deliver participation in up markets.”