Comprehensive model combinations integrate public offering investments, private real estate debt, and active risk management to help financial advisors support clients' retirement and long-term financial goals.
Scottsdale, Arizona, USA, October 8th / PRNewswire / -- Redwood Investment Management, LLC ("Redwood") are celebrating the 10th anniversary of the launch of their Engineered Risk - Budgeted (ERB) model portfolio, marking a decade of collaboration with financial advisors to place client risk expectations at the core of portfolio management. This milestone also highlights the evolution of this set of five-model portfolios; today, this series, designed to meet the needs of individual investors under the RiskFirst ® framework, integrates public and private investments together.
This evolution is not just about expanding the portfolio. It reflects the focus of Redwood: to link portfolio construction with customers' needs for funds – to participate in investment opportunities, to generate income to support living expenses, and also to manage loss risks in a disciplined manner.
Redwood, Managing Partner and Portfolio Manager, said: "For retirees, a portfolio represents decades of hard work and the freedom to live according to their own plans. We created ERB to provide financial advisors with a partner who can take on this responsibility. Our goal is to help retirees participate in the market and maintain their investments with more confidence, because there is a disciplined process that actively manages the risks of their portfolios. The impact we hope to have is not just about the numbers on the investment statements; it’s about helping people spend less time worrying about their money and more time living their lives."
Public and private assets. A well-coordinated combination.
The approach of Redwood is to incorporate private equity investments into the model portfolio framework, alongside public market strategies, rather than treating them as isolated configurations. Each component has a clear purpose, and the focus of portfolio construction lies in how these components work together to achieve the investor's objectives.
The addition of private real estate debt has expanded the investment toolbox of ERB, introducing a configuration aimed at supporting portfolio stability and providing current income, including for retirement clients. Within a broader framework, public markets exposure, private investments, and defensive strategies each play complementary roles; as the risk of drawdowns increases, quantitative analysis is used to guide defensive positions.
For customers, the goal is to bring market participation, revenue needs, and risk management into the same investment discussion, rather than a series of disconnected investment decisions.
Redwood, the managing partner and portfolio manager, stated: "The opportunity is not just to incorporate private equity assets into the model portfolio, but to integrate public and private investments so that each part can play a clear role in serving clients. Our goal is to work side by side with financial advisors to achieve world-class results for those who rely on them. It all begins with understanding what clients hope their funds will accomplish, and then managing the portfolio around those goals."
A ten-year cooperative relationship built around our customers
ERB stems from a practical challenge faced by financial advisors: how to combine individual investment strategies into a portfolio that meets the client's expectations. Advisors who place emphasis on Redwood risk management strategies need a more comprehensive solution. Even when distributing funds among multiple managers, there may still be overlaps in holdings, as well as an exposure to the same assets that exceeds expectations.
Redwood develops ERB, aiming to connect these individual investment decisions through a coordinated and integrated management approach. This approach marks the company's evolution from providing a single strategy to becoming a portfolio management partner for financial advisors, supporting them in taking on responsibilities that go beyond mere investment management in their clients' financial lives.
As the portfolio continues to evolve, the investment philosophy remains consistent. The RiskFirst ® method of Redwood defines risk as a drawdown, which is the decrease in portfolio value from its peak to a subsequent low point. Each of the five ERB models has a clear tolerance for drawdown risk, which is used to guide portfolio construction and management. These targets are intended as goals, not guarantees, nor are they limitations on potential losses.
This anniversary celebration not only recognizes the consistency of the ERB framework but also its continuous development: a broader range of investment tools, the integration of public and private assets, and a constant focus on the people these portfolios serve.
About Redwood Investment Management
Redwood Investment Management brings institutional-level investment processes to all individual investors through its RiskFirst ® solutions. Redwood believes that as long as risks are managed prioritarily, success in investing will naturally follow. Its innovations include: allowing investors to access privately placed debt secured by real estate through a single stock code, as well as providing out-of-the-box asset allocation models that integrate public and private investments. Redwood collaborates with financial advisors to offer these solutions through Redwood mutual funds LeaderShares ® ETFs and Engineered Risk - Budgeted Model portfolios. Without the need for a minimum investment amount, certification, or cumbersome paperwork, investors can access real estate loans secured by short-term liens, making more complex investments accessible to everyone. For more information, please visit redwoodim.com.
Important Disclosure Information
Investors should carefully consider the investment objectives, risks, fees, and expenses of Redwood Private Real Estate Debt Fund. Information regarding this fund and other important details is contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling 1-888-570-0805. It is essential to read the prospectus thoroughly before making any investment.
This fund is a closed-end fund with a specified investment period. It is only suitable for investors who are willing to take on high risks and do not require liquidity in their investments. The fund has no intention of being listed on any stock exchange, and it is not expected to develop a secondary market. Since you cannot sell your shares immediately or request a repurchase, it will be difficult for you to reduce your exposure in a timely manner during periods of market decline. The annual distribution may consist entirely or partially of capital returns (i.e., from your initial investment) rather than net investment earnings.
The fund has a limited operating history, and its shares have no public trading record. According to the "Investment Companies Act," this fund is classified as a "non-diversified" fund. As such, compared to "diversified" funds, it can invest a larger proportion of its assets in debt instruments issued by a single issuer, which may make it more susceptible to adverse effects from events related to that single company, economy, politics, or regulations. Although the fund does not intend to influence or control management companies, it does invest in companies that advisors believe have potential for capital appreciation due to certain changes. Advisors' assessments of companies may be incorrect, their efforts may not be successful, and even if successful, they could have unexpected consequences or lead to a decline in the fund's investment value.
Redwood Private Real Estate Debt Fund is distributed by PINE Distributors LLC, which has no association with Redwood Investment Management and LLC. PINE ID REDWD -5982349-10/26
Princess Gatela
VP Marketing
Redwood Investment Management
[ email protected ]
SOURCE Redwood Investment Management
