The Big Question: Should there be set parameters for risk-rated funds?

Edward Smith, global strategist, Collins Stewart Wealth Management   Grave Error Standardising volatility parameters may help investors better understand the growing legion of risk-rated funds – volatility is not necessarily intuitive for many retail clients. However, we believe any standardisation of asset allocation would be a grave error, potentially impeding the best equipped managers from keeping within their risk mandate during periods of acute turbulence in financial markets. Furthermore, properly risk rating the mandate of the funds is a good starting point, but it is just ...