Risk rating discrepancies must be tackled 'head on' - Fundscape

Active ahead at year-mark in ‘Wealth-Off’ experiment

Victoria McKeever
clock • 3 min read

Discrepancies in risk profile ratings need to be tackled "head on", Fundscape chief executive Bella Caridade‐Ferreira has warned, following the 12-month results of the firm's portfolio performance experiment.

While the majority of active funds have beaten the passive investments in the 12 months since Fundscape launched ‘The Great British Wealth Off', the Hawksmoor Vanbrugh fund failed to perform as well, despite seeing some growth in the fourth quarter. Fundscape attributed this to its changing risk profile. "To make comparisons easier, when we started this experiment we chose funds that had the same risk profile of five — as most DIY investors would have done — only to find some of the funds have seen their risk profile change over the year," explained Caridade-Ferreira (pictured).  "Tha...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: Beyond 60/40

Invesco
clock 25 March 2024 • 5 min read
'Fundamental shift': Why transparent investing really matters

'Fundamental shift': Why transparent investing really matters

‘There needs to be a concerted shift towards greater openness’

Simon Camilleri
clock 18 March 2024 • 4 min read
Partner Insight: Passive and active — the case for both

Partner Insight: Passive and active — the case for both

Invesco
clock 18 March 2024 • 4 min read