We understand the importance of positioning your fund’s risk appropriately, so advisers can efficiently select their clients’ most suitable funds
While the risk-rating of funds used for accumulation is well established, no comparative approach applies to decumulation. Our decumulation fund risk ratings offer a consistent approach to selecting suitable funds for decumulation while complementing your client’s risk profiling and cashflow withdrawal planning service.
What are the benefits?
Increase assets under management
as advisers quickly and easily matching your risk-rated funds to their clients’ risk profiles.
Enhanced visibility
with advisers as your risk-rated funds appear within our adviser tools and solutions.
Delivering consistency
with robust risk-rated fund propositions supporting the delivery of suitable and compliant advice.
How do we accurately determine risk scales?
When assessing a fund or portfolio’s riskiness, it is important to apply a method that considers the fund’s objective. For example, the investor’s objectives - whether to grow their investment or draw an income - can significantly affect a fund or portfolio’s observed riskiness.
Using a risk scale aligned with our attitude-to-risk questionnaires’ outcomes helps your funds be matched seamlessly to customers’ risk profiles for both growth (accumulation) and income (decumulation) objectives.
Growth Objective
We measure the spread of outcomes that a fund might achieve over different investment terms, capturing how returns on different assets vary over time relative to one another.
Income Objective
We focus on income: we calculate a fund’s average sustainable income - drawn from both the fund’s income and capital returns - and measure by how much it might fall.
The system has three pre-set asset allocation targets, for both growth and income:
EV Standard 5
EV Standard 7
EV Standard 10
Selecting the right fund risk-ratings based on objective
Support your clients by matching your products to customer risk profiles
Providing risk-rated funds for accumulation is an easy way for advisers to turn their risk questionnaire’s output into suitable recommendations. Enabling them to run their businesses efficiently with the knowledge that they are meeting their compliance obligations, and more importantly, providing vital information empowering them to make choices about which fund to recommend for their clients specifically.
Explaining to advisers how your fund matches their client’s suitability requirements for growth
An objective-based methodology fitting with their cash flow planning and can be easily explained to customers
Designed to work as part of an adviser’s suitability process
Quickly compare volatility risk relative to other funds
Apply a risk measure appropriate for your client’s objective. Accumulation risk ratings measure a fund’s Value at Risk (VaR)
Click the company logos below to access our fund finder.
Revolutionise your approach to risk-rating funds for decumulation.
The combination of risk rating, calculating the average income and showing the potential for the income to fall provides vital information enabling advisers to make choices about which fund to recommend for their clients specifically. Other benefits include.
Explaining to advisers how your fund matches their client’s suitability requirements for income
An objective-based methodology fitting with their cash flow planning and can be easily explained to customers
Designed to work as part of an adviser’s suitability process in the same way as accumulation
Quickly compare income risk relative to other funds
Apply a risk measure appropriate for your client’s objective. Decumulation risk ratings measure a fund’s Income at Risk (IaR).
Click the company logos below to access our fund finder.
Would you like us to risk-rate your fund range?
We are always looking to expand the number of funds on our list. If you would like us to risk rate your chosen fund range please book a call.
How do we calculate EV Risk Ratings?
To learn more about our fund risk-rating methodology and how it can help promote your range of funds or portfolios, please download our helpful guide.
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