Finametrica signs ‘risk description’ deal with Margetts
Risk profiler to roll out standardised risk descriptions across range of multi-asset funds.
Margetts Fund Management has finalised a deal woth risk profiler Finametrica to provide standardised “descriptions of risk” for its four risk-rated portfolios.
The fund manager said the arrangement would give investors a “clear, transparent explanation” of each fund’s management and asset allocation to help advisers manage client expectation.
The Finametrica tool compares each of Margetts’ four risk-rated funds - Providence, Select Strategy, International Strategy and Venture Strategy - to the three-month bank deposit rate. In addition, it illustrates using historical data how each portfolio would have behaved during the five biggest market rises and biggest falls in the last 20 years, and how long the portfolio took to recover its value.
Paul Resnik (pictured), director and co-founder of Finametrica, said: “Investors should never be surprised either by their portfolio returns or the volatility of those returns. [This will] help investors better deal with the passions that drive them to want to invest more when the markets are rising and cash-out when markets are falling.”