Solution introduction
The only Canadian indices that compare performance and volatility for groups of mutual funds with similar prospectus risk ratings
Identify the best performing funds within a prospectus risk rating peer group
Fundata Canada captures 99.9% of the current Prospectus Risk Ratings for the more than 21,000 prospectus-issuing mutual funds in Canada.
According to recommendations by the Investment Funds Institute of Canada, standard deviation is the most widely understood measure of portfolio risk, and should be related to the Prospectus Risk ranking assigned to a fund. However, fund managers may assign any risk rating they decide is suitable for the fund.
This can cause significant discrepancies among the standard deviation of funds within the same risk category. The Fundata Prospectus Risk Indices highlight these discrepancies and provide objective Prospectus Risk benchmarks to measure the degree to which a fund stays within or varies from its stated risk category.
The Fundata Prospectus Risk Indices will give investors a standard by which to measure mutual funds according to the level of risk assigned by the fund manager.
