Advisers confused by risk-rated and risk-targeted funds - survey

Some 15% of the 700 questioned by fund group Iveagh did not know the difference. Risk-targeted funds are usually measured using volatility in a forward looking strategy, whereas risk-ratings use historical data to give an estimation of how the fund will perform. Although the Iveagh research suggests 44% of advisers understand the difference between risk-rated and risk-targeted propositions in the market, just 2% have a proposition of this kind in place, whether it's an in-house model or outsourced to a discretionary fund manager. Of those asked, 39% admitted they need help with thi...