The five-model lineup was originally conceived to solve a practical dilemma for financial advisors: the difficulty of combining disparate investment strategies into a unified portfolio that accurately reflects a client’s risk tolerance. By moving away from disconnected asset allocations, Redwood aimed to create a cohesive structure where public-market exposure and defensive strategies function as a single, coordinated unit.

Recent updates to the framework include the addition of private real estate debt, a move designed to enhance portfolio stability and provide consistent income for retirees. According to Managing Partner Richard Duff, the core objective remains managing drawdown risk—the decline from a peak to a subsequent low—to help clients remain invested with greater confidence. Managing Partner Michael Cheung noted that the firm’s ambition is to move beyond simple asset selection, focusing instead on how individual components serve the specific financial goals of the investor. These target-based models continue to serve as a primary tool for advisors seeking to balance market participation with disciplined risk mitigation.