Fundata Canada is launching five Canadian indices called the Fundata Prospectus Risk Indices.
They’re designed to provide institutions, portfolio managers, advisors, and retail investors with a tool for comparing performance and volatility among mutual funds with similar risk prospects.
Among the 850 fund data points it tracks, the company captures a large portion of the current prospectus risk ratings of more than 12,000 prospectus-issuing mutual funds in Canada.
The Prospectus Risk Indices was constructed and back-tested against historical data to ensure accuracy. Prof. Eric Kirzner, of the University of Toronto Rotman School of Management, acted as external consultant, since he has a background in complex derivative valuation, market operations and regulation, and ETF development.