Distribution Technology provides a risk profiling service to aid advisers in assessing fund suitability for clients.
It has produced a document Fund risk profiling and Dynamic Planner (PDF, opens in a new window) which explains how its risk figures are calculated. Its scale ranges from ‘1 – Lowest risk’ to ’10 – Highest risk’.
Three of Artemis’ funds are currently risk profiled by Distribution Technology; view fund information sheet for each of the funds (PDFs, open in a new window):
Artemis High Income Fund risk profile 5 – low medium risk
Artemis Monthly Distribution Fund risk profile 5 – low medium risk
Artemis Strategic Bond Fund risk profile 4 – lowest medium risk
Distribution Technology and Synthetic Risk Return Indicators (SRRI)
These risk profiles do not replace the Synthetic Risk Return Indicators (SRRI). SRRI figures are calculated in accordance with guidelines issued by the European Securities and Markets Authority (ESMA). It measures each fund on a scale from ‘1 (typically lower rewards with lower risk)’ to ‘7 (typically higher returns with higher risk). The SRRI is calculated using a quantitative measure of a fund’s past performance and its volatility. The SRRI figures for each of our funds are published in the respective Key Investor Information Document (KIID).
The document above explains how Distribution Technology’s risk profiling methodology differs from the SRRI.
Visit Distribution Technology’s website (opens in a new window) for further information.