Managing Risk in the Funds

Risk Evaluation

We evaluate the economic, investment and other risks being taken within each fund. We may select investments on the basis of their specific investment credentials but also with the objective of mitigating the impact of identified individual risks on the fund.

Constant Monitoring

Each time we make an investment decision and also at least once a month we run the volatility calculations to ensure that the expected volatility of each fund remains at an appropriate level.

Expected Volatility

We manage the ‘expected volatility’ of each fund. This is calculated by taking account of the expected volatility in every type of investment that we use (based on their historical volatility) which gives us an overall expected volatility of the fund.

Regular Risk Review

In addition we use a specialist external company (Distribution Technology) to review the funds every quarter to confirm our assessment of their expected volatility.

Our Approach to Managing Risk in the Funds

Investment Director David Appleton outlines our approach to managing risk in the Funds.