At FE we understand that taking necessary, calculated risks is part of everyday
life, which is why we have launched FE Risk Scores. Investors need to be sure that
they are making a truly informed decision based on the facts, and FE Risk Scores
provide a single, easy to understand measurement of the relative riskiness of individual
investments or even an entire portfolio.
FE Risk Scores join a growing suite of investment research, selection and monitoring
tools. Complementing our popular FE Alpha Manager and FE Crown Fund Ratings, they
offer a new means for investors to make more informed investment decisions.
Unique to FE and in contrast to many other risk measurements, they are:
- Simple to use and easy to understand
- Flexible - covering the majority of investment types in one measurement tool
- Sensitive to market conditions
- A barometer - measuring relative rather than absolute risk
FE Risk Scores define risk as a measure of volatility relative to the FTSE 100 index
which has a fixed risk rating of 100. Cash has a fixed reference score of zero.
Instruments more volatile than the FTSE 100 have a score above 100 and vice versa,
giving a reliable indication of relative risk They allow UK investors to compare
a fund, an equity, an entire portfolio or even an index on a single scale - so you
can see exactly where your risk exposure lies, helping in initial fund selection
and in ongoing portfolio management.
Updated weekly, the scores are calculated using a minimum of 18 months and a maximum
of 3 years of weekly total returns to measure the volatility of an instrument relative
to the FTSE 100. All values are rebased to sterling. The scores are less weighted,
but not excessively so, to older returns so the scores are more sensitive to recent
events.
For UK investors the following instrument types are scored:
- UK equities
- UK Unit trusts and OEICs
- UK Life and Pension Funds
- Offshore funds for sale in the UK
- ETFs and VCTs
- Fund sector averages and indices
In addition, FE Risk Scores can be applied across an entire portfolio.
FE Risk Scores are now available from our award winning Trustnet and Analytics research
tools giving UK investors access to this powerful new level of insight for the first
time.
Take a more calculated approach to investment and see for yourself how your funds
and portfolios have scored.
FE Risk Scores - empowering investors to make more informed investment decisions.
For more information please click here