Van Eyk launches risk ratings system
Researcher van Eyk has adopted a new risk ratings system designed to provide clients with risk warnings on managed funds.
The monitoring system is designed to ensure clients are provided with a clear message as to the level of risk associated with investing in a particular fund, said van Eyk head of investment research Nigel Douglas.
Designed to complement van Eyk’s fund rating system, the risk ratings system will also assist investors in aligning their investment decisions with their risk tolerance levels, Douglas said.
“The ongoing financial crisis and freezing of various managed funds has highlighted the importance of understanding the nature of the risk associated with investing in particular asset classes.
The key to investment risk management and long-term wealth generation is not in avoiding risk but gaining a better understanding of the nature of the asset sector and investment strategy risks undertaken by fund managers in seeking positive returns, he said.
The new system will first be applied to van Eyk’s upcoming review of the Australian equities sector.
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