In an ever-expanding world of multi-asset funds claiming to manage, profile, rate or target risk, it is important to understand precisely what is on offer, writes gbi2 managing director Graham Bentley.
2016 has seen the continued market penetration of multi-asset solutions. These funds are variously described as risk-managed, risk-profiled, risk-rated or risk-targeted. Clearly, when assessing the quality of management of these funds, it is important to understand the terminology involved. 'Managed' or 'profiled' promises are worthless marketing-speak. A risk-rated fund meanwhile will have been so designated by an independent source, according to a given volatility scale. The industry 'standard' is probably Distribution Technology - although I should admit to a potential conflict her...
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