Architas Multi-Manager, part of the global AXA Group, is a leading multi-manager that benefits from a firm foundation allowing us to compete on the global stage, while maintaining operational independence.
We offer our clients exposure to a diverse range of assets via some of the world's most talented investment managers, selected as the culmination of a robust investment process based on intensive, market- leading fund research. Central to this process is an acute awareness of the importance of risk-profiling.
For some time, the FSA has been urging Financial Planners to take into account an investor's attitude to risk and capacity for loss – their ability to absorb a fall in the value of their investment – in conversations to
establish suitability of investments. In this time of unprecedented stockmarket volatility, investors too are growing increasingly aware of the risk involved in their investments. As a result of this awareness, risk profiling of funds has become a popular tool in the investment advice process.

At Architas, we offer three ranges of risk-profiled funds: the Architas Multi-Asset (MA) Active range, the Architas MA Blended range and the Architas MA Passive range. Each fund is ranked on a scale of one to seven, where risk profile one represents the lowest level of risk (typically cash on deposit) and seven represents the highest level of risk.
This scale is provided by eValue FE, experts in financial risk modelling. Using current and historic economic data, eValue FE generates a wide set of possible future economic scenarios. This allows them to estimate possible future risk and return profiles for asset classes, such as UK Equity or Emerging Market bonds, and build an optimal asset allocation model.
For each risk profile, Architas then manages the funds' asset allocations in line with the recommendations of the risk model, ensuring that each fund therefore always has the appropriate amount of risk under the model.
Risk-profiling is an invaluable tool that allows Financial Planners and their clients to better understand potential losses during the life of an investment. Part of the imminent Retail Distribution Review is more stringent requirements over demonstrating the suitability of a fund for an investor: the importance of risk profiling can only increase in the future and Architas will be there to help.