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You can’t control performance.

You can manage risk.

Disclosure

Manage RiskFirst

Success Follows

  • $0B

    AUM

  • 0+

    Financial Advisors

  • 0%*

    Annual Growth

Disclosures

Overcoming Industry Inertia

For decades, advisors have picked and churned through money managers based on past performance. It’s time-consuming, misleading, and not your main value-add. Ready to break through the inefficient cycle?

Sphere

Manager “Research” Seeking Returns

Advisors pick and choose the “best” portfolios based on historical returns

Our 3-Step Solution

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01Setting Expectations

01Setting Expectations

Define Drawdown Risk

    Vague terms like "conservative, moderate, or aggressive" fail to quantify the investor's most important risk metric: capital loss, measured by drawdown. The RiskFirst process is designed to keep investors within drawdown guidelines based on defined risk-tolerance objectives.

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    Define Drawdown Risk

    Provide Ranges

      Investor expectations should be based on a range of potential returns aligned with their risk budget. Our portfolios are built to operate with 95% probability within an expected range.

      Ranges of Returns
      Provide Ranges

      02Implementing Investments

      02Implementing Investments

      Pair Strategic with Tactical

        Redwood Engineered Risk-Budgeted portfolios combine the benefits of strategic long-only and tactical risk management investment styles. Every ERB portfolio operates sub-strategies that can fully participate – or tactically can go risk-off.

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        Pair Strategic with Tactical

        Strategic

        • Stays invested to capture strong market rallies
        • May incur larger drawdowns amid market crises
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        Strategic

        Tactical

        • Can move into defensive positions to mitigate portfolio drawdown
        • May miss initial upside in a recovery — or buy back in higher than sell point
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        Tactical

        Engineered Risk-Budgeted Portfolio

          Redwood’s Engineered Risk-Budgeted (ERB) portfolios seek to mitigate drawdowns by diversifying both asset classes and investment styles. The ERB models incorporate tactical mandates to maintain beta exposure during upside, with the flexibility to move risk assets to safe havens – such as cash and short-term treasuries – during downturns.

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          Engineered Risk-Budgeted Portfolio

          Designate Drawdown Limits

            Our portfolios are designed to keep the investor on track and within their risk budget. We engineer each portfolio with the objective to stay within drawdown limits based on the investor’s defined risk tolerance.

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            Tactical Fixed-Income

            Strategic Equity

            Strategic Fixed-Income

            Active Factor

            Tactical Equity

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            What is your drawdown tolerance (DT)?
            DT5-8%
            DT8-12%
            DT12-17%
            DT17-25%
            DT25-35%

            03Measuring Outcomes

            03Measuring Outcomes

            Focus on Client Service

            Redwood operates as a true business partner, providing the models, materials, and metrics you need to achieve practice growth through client satisfaction.

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            Focus on Client Service

            Quantify Success

            Show clients they are on track when a portfolio stays within two key metrics: drawdown budget and range of expected returns.

            Download
            Quantify Success

            Sharpen Communication

            Proactively engage clients via letters, market reports, and commentaries — weekly, monthly, and quarterly — all “white label” in your brand.

            Download
            Sharpen Communication

            Leverage Our Library

            Utilize Redwood-curated insights, case studies, advisor best practices, and other materials designed to help you refine your narrative and better serve clients.

            Download
            Leverage Our Library

            Impact for RiskFirst® Partners

            • Your Time

              77% of advisors’ time goes to meeting with clients and prospects.

              Redwood manages portfolio construction and investment research – so that you can focus on client service.

            • Your Team

              75% of advisors work on a team of three or fewer staff.

              Leverage Redwood’s decades of investment and operations expertise to amplify your in-house capabilities.

            • Your AUM

              28%* – average annual AUM growth for RiskFirst® adopters.

              When your clients are aligned with their financial goals, it doesn’t build just credibility and trust – it builds your business.

            How to Implement RiskFirst®

            01

            Align

            Align

            To begin, a Redwood Advisor Analyst (AA) will help you evaluate if your business is a good fit for the RiskFirst process.

            02

            Investigate

            Investigate

            Your dedicated AA facilitates the due diligence research process, answering questions, furnishing resources, and resolving any issues.

            03

            Transition

            Transition

            Receive a seamless transition strategy as your AA delivers proven resources tailored to your business goals, ensuring a smooth implementation.

            04

            Reframe

            Reframe

            Start defining your performance narrative around drawdown risk budget and the ability of client portfolios to stay in range.

            05

            Trade

            Trade

            Unlock hand-in-glove support from our in-house operations team to simplify the trade execution process.

            06

            Reinforce

            Reinforce

            Distribute timely, curated materials – market updates, quarterly commentaries, and topical letters – branded to your business.

            07

            Collaborate

            Collaborate

            Enjoy ongoing RiskFirst partnership support from your AA when addressing client-specific needs and while evolving, scaling, and growing your practice.

            Platforms

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            Custodian Availability

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            Broker-Dealer Availability

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            Matrices

            Redwood

            ERB Model Matrix

            Redwood

            TD iRebal®

            Redwood ERB TD iRebal® MMC Matrix

            TD iRebal®

            Morningstar Marketplace

            Redwood ERB Morningstar® MMP Matrix

            Morningstar Marketplace

            Fidelity

            Redwood ERB Model Matrix (Fidelity)

            Fidelity

            Schwab

            Redwood ERB Model Matrix (Schwab)

            Schwab

            Pershing

            Redwood ERB Pershing Matrix

            Pershing

            LPL SAM/SWM

            Redwood ERB LPL Financial Matrix

            LPL SAM/SWM