Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

14052

CSA proposes risk classification methodology for fund facts

RELATED TOPICS​

The Canadian securities regulator, the CSA, has published for comment a proposed risk classification methodology for the use of mutual fund managers in Fund Facts documents.

The proposed standardised methodology is intended to address concerns by stakeholders regarding the lack of standardisation in risk disclosure, which could result in an inconsistent evaluation of risk and make comparisons between mutual funds difficult.
 
Fund Facts currently requires the fund manager of a mutual fund to provide a risk rating for the mutual fund based on a risk classification methodology chosen at the fund manager’s discretion. The fund manager must then identify the mutual fund’s risk level.
 
The proposed methodology, intended to measure volatility risk, would classify mutual funds based on the degree to which returns vary over time from the average return (standard deviation). Six risk categories would correspond to standard deviation bands and range from "low" (zero to two per cent deviation) to "very high" (over 28 per cent deviation). Calculations would be based on the monthly total returns of the fund and mutual funds would have to use returns over the past 10 years to calculate standard deviation. Mutual funds without a sufficient performance history would be able to use a reference index meeting certain criteria.
 
The CSA is accepting comments on the proposal until 12 March 2014. 

Latest News

Bloomberg and General Index (GX) have announced the expansion of their strategic collaboration which builds..
EFAMA has commented on today’s vote by the European Parliament in favour of a new..
Morgan Stanley Investment Management (MSIM) has announced the launch of the MS INVF Systematic Liquid..

Related Articles

Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US are committed to implementing a variety of measures to address climate change and reach their net-zero goals, according to Cerulli Associates...
n response to the increased attention to climate change risk, institutional investors, asset managers, and asset owners in the US..
Lord Hollick, House of Lords
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with genuine independence from government and how they are held to account...
A House of Lords committee has raised “significant concerns” over the role of UK regulators, their ability to operate with..
Rob Edwards, Morningstar
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed bag in 2023...
The complexities of assessing performance from responsible investment strategies have been laid bare after Morningstar’s ESG indices delivered a mixed..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by