Comparing funds in the IA Volatility Managed sector is difficult due to their myriad volatility targets. So, what happened when we built a benchmark of our own?
Investors were warned from the start. When the Investment Association (IA) launched the Volatility Managed sector a little under five years ago, it cautioned against using it to compare funds. This is because those it contains use different volatility targets, making at-a-glance comparisons almost meaningless. So, how can advisers assess funds within the sector? Is it possible to build a benchmark? The irrelevance of average One of the characteristics of the IA Volatility Managed sector is its diversity. Fund suites use different definitions of volatility (realised or pr...
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