EV Fund Risk Ratings Service

Group 11001
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 brand new 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?

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Increase assets under management

as advisers quickly and easily matching your risk-rated funds to their clients’ risk profiles.

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Enhanced visibility

with advisers as your risk rated funds appear within our adviser tools and solutions.

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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:
Group 8680
EV Standard 5
Group 13936
EV Standard 7
Dials Risk 10
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 see our latest risk ratings.

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 see our latest risk ratings.

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 get in touch at contact@ev.uk

Component 3601 – 2
Group 14105

How do we risk rate a fund or portfolio

Download the guide here

How do we Risk Rate a Fund or Portfolio_Mockup-2

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