Nine in ten risk-targeted funds undershoot objectives - Square Mile

The estimated figure was based on an analysis by the fund research and ratings agency, which the head of client relationships suggested could be an issue when volatility spikes, as it had over the past week. However, Earnshaw said: "There is a good reason for this, as most targets are based on forecast volatilities over long time periods and we've been in a period where there's been low volatility, particularly in equity markets." This was not a problem when running a balanced portfolio, she said, but warned the last week served as a reminder that volatility would spike the other way ...