The Investment Funds Institute of Canada (IFIC) has released its updated Voluntary Guidelines for Fund Managers Regarding Fund Volatility Risk Classification.
The guidelines were first developed in 2003 by IFIC’s Fund Risk Classification Task Force to provide mutual fund managers with a consistent approach to the measurement and description of fund volatility risk. The guidelines have been updated annually.
Current regulations require fund managers to publish each fund’s risk level; however, the regulations do not define risk. IFIC has been releasing its guidelines publicly since 2014 to ensure all stakeholders have ready access to the industry’s most commonly used methodology.
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