Redwood Marks 10 Years of ERB Model Portfolios: Public and Private Markets, One RiskFirst®

Integrated model portfolios bring public investments, private real estate debt, and active risk management together to help financial advisors support clients' retirement and long-term financial goals

SCOTTSDALE, Ariz., Oct. 8, 2026 /PRNewswire/ -- Redwood Investment Management, LLC ("Redwood") is celebrating the 10-year anniversary of its Engineered Risk-Budgeted (ERB) model portfolios, marking a decade of partnering with financial advisors to put client risk expectations at the center of portfolio management. The milestone highlights the evolution of the five-model lineup, which today integrates public and private investments within a coordinated RiskFirst^® framework designed around the needs of individual investors.

That evolution is more than expanding the investment mix. It reflects Redwood's focus on connecting portfolio construction with what clients need from their money: participation in investment opportunities, income to support their lives, and a disciplined approach to managing the risk of loss.

"For someone in retirement, a portfolio represents decades of work and the freedom to live the life they have planned," said Richard Duff, Managing Partner and Portfolio Manager at Redwood. "We created the ERBs to give financial advisors a partner in that responsibility. Our goal is to help retirees participate in markets and remain invested with greater confidence, knowing that a disciplined process is actively addressing risk in their portfolios. The impact we seek goes beyond an investment statement: helping people spend less time worrying about their money and more time living their lives."

Public and Private Assets. One Coordinated Portfolio.

Redwood's approach brings private investments into the model portfolio framework alongside public-market strategies, rather than treating them as an isolated allocation. Each component has a defined purpose, with portfolio construction focused on how those components work together to pursue the investor's objectives.

The addition of Private Real Estate Debt has expanded the ERB investment toolkit, introducing an allocation intended to support portfolio stability and provide current income, including for clients in retirement. Within the broader framework, public-market exposure, private investments, and defensive strategies serve complementary roles, with quantitative analysis informing defensive positioning as drawdown risk increases.

For clients, the objective is a portfolio that brings market participation, income needs, and risk management into the same investment conversation—not a series of disconnected investment decisions.

"The opportunity is not simply to add private assets to a model portfolio. It is to integrate public and private investments so that each has a clear role in serving the client," said Michael Cheung, Managing Partner and Portfolio Manager at Redwood. "Our ambition is to work alongside financial advisors to pursue world-class outcomes for the people who depend on them. That starts with understanding what clients need their money to do, then managing the portfolio toward those objectives."

A Decade of Partnership, Built Around the Client

The ERBs originated from a practical challenge facing financial advisors: combining individual investment strategies into a portfolio that reflected the expectations established with clients. Advisors who valued Redwood's risk-management strategies needed a broader solution. Allocating among multiple managers could still produce overlapping holdings and greater exposure to the same assets than intended.

Redwood developed ERBs to connect those individual investment decisions through coordinated portfolio management. The approach marked an evolution from providing individual strategies to serving as portfolio management partners supporting advisors whose responsibilities extend beyond investing in the financial lives of their clients.

The investment philosophy has remained consistent as the portfolios have evolved. Redwood's RiskFirst^® approach defines risk through drawdown, or the decline in a portfolio's value from a peak to a subsequent low. Each of the five ERB models has a defined drawdown-risk tolerance that guides portfolio construction and management. These objectives are targets, not guarantees or limits on potential losses.

The anniversary recognizes both consistency and the continued development of the ERB framework: a broader investment toolkit, an integrated approach to public and private assets, and an enduring focus on the people whose lives those portfolios are designed to support.

About Redwood Investment Management 

Redwood Investment Management brings institutional-grade investment processes to all individual investors through its RiskFirst^® solutions. By prioritizing risk management, Redwood believes investment success naturally follows. These innovations include democratizing access to private debt secured by real estate with a single ticker symbol and offering turn-key asset allocation models that blend public and private investments. Redwood partners with financial advisors to deliver these solutions via Redwood mutual funds, LeaderShares^® ETFs, and Engineered Risk-Budgeted Model portfolios. With no minimums, accreditation, or paperwork, investors gain access to short-duration, 1st lien secured real estate loans, making sophisticated investing available to all. Learn more at redwoodim.com 

Important disclosure information 

Investors should carefully consider the investment objectives, risks, charges and expenses of the Redwood Private Real Estate Debt Fund. This and other important information about the Fund are contained in the prospectus, which can be obtained at redwoodmutualfunds.com or by calling 1-888-570-0805. The prospectus should be read carefully before investing. 

This fund is an interval closed-end fund. The Fund is an appropriate investment only for those investors who can tolerate a high degree of risk and do not require a liquid investment. The Fund does not intend to list the Shares on any securities exchange and the Fund does not expect a secondary market in the Shares to develop. Because you will be unable to sell your Shares or have them repurchased immediately, you will find it difficult to reduce your exposure on a timely basis during a market downturn. All or a portion of an annual distribution may consist solely of a return of capital (i.e., from your original investment) and not a return of net investment income.

The Fund has limited operating history and the shares have no history of public trading. The Fund is classified as "non-diversified" under the Investment Company Act. As a result, it can invest a greater portion of its assets in obligations of a single issuer than a "diversified" fund. The Fund may therefore be more susceptible than a diversified fund to being adversely affected by a single corporate, economic, political or regulatory occurrence. Although the Fund does not intend to invest in companies for the purpose of effecting change or influencing or controlling management itself, the Fund invests in companies that the Adviser believes have potential for capital appreciation resulting from such changes. The Adviser's evaluation of companies may prove incorrect, or the efforts which they invest may not be successful, or even if successful, may have unintended affects or cause the Fund's investment to lose value.

The Redwood Private Real Estate Debt Fund is distributed by PINE Distributors LLC, which is not affiliated with Redwood Investment Management, LLC. PINE ID REDWD-5982349-10/26

Princess Gatela
VP Marketing
Redwood Investment Management
[email protected]

SOURCE Redwood Investment Management