Designed to protect capital and support long-term goals
At Rathbones, we take a more practical view of risk. Instead of simply categorising assets by type, we look at how they behave in different market conditions. This approach can help us build more resilient portfolios which aim to provide better protection during downturns and a clearer relationship between risk and return.
Our framework is called LED – Liquidity, Equity-type risk and Diversifiers – and it underpins how we build and manage portfolios across both our Bespoke and Managed services.
The LED risk framework
- Liquidity. Assets that can be sold quickly and reliably, even in volatile markets – typically government bonds and high-quality corporate debt. These investments help manage cash flow and avoid forced sales.
- Equity-type risk. Return-seeking assets that behave similarly to equities. These include listed shares, private equity, high-yield bonds and other growth-oriented investments.
- Diversifiers. Assets with low correlation to equities, included specifically to reduce volatility and smooth returns. Examples include infrastructure, commodities and certain property funds.
By focusing on how assets interact – not just how they’re labelled – we aim to build portfolios that adapt better to real-world market conditions and support long-term outcomes.
What this means for your clients
- Greater clarity around risk
- Improved ability to navigate market volatility
- Portfolios designed to support sustainable withdrawals and preserve wealth
- We apply this framework consistently across all our strategies, adjusting the mix to suit each client’s objectives and tolerance for risk.
Our discretionary fund management services
Specialist Tax Portfolio Service
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