FE to launch risk-rated multi-asset sectors

Data provider FE is to launch five new multi-asset sectors later this month based on risk ratings to help users compare funds in an increasingly complex space.

Investment Week can reveal the sectors will run from low to high risk, using FE's own risk score data to determine which funds go where. Each sector will have its own name, but will come under the Risk-Targeted Multi-Asset Solutions universe which FE has created. The FE risk score is collated by looking at the historic volatility of funds versus the FTSE 100. In terms of the spectrum of scores, cash is zero, and the FTSE 100 has a score of 100, with funds receiving their own score in comparison. Some are more volatile than the FTSE 100, and therefore have a higher score. The Neptun...