The Investment Funds Institute of Canada (IFIC) has released its updated Voluntary Guidelines for Fund Managers Regarding Fund Volatility Risk Classification.

Read: CSA proposes new risk-rating methodology for funds

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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