SIG warns on 'misleading' risk-rated funds

Skandia Investment Group (SIG) has warned fund management groups which have integrated risk-rated tools into existing multi-asset propositions they are in danger of ‘misleading' investors.

This month Investment Week reported more and more providers are looking to introduce risk-rated products into their propositions ahead of RDR, among them some of the largest companies in the industry. However, SIG said risk scores only provide a snapshot of how portfolios are structured at a single point in time, and therefore are not providing true reflections of the overall risks to which investors are exposed. Graham Bentley, (pictured), head of UK proposition at Skandia, said: “Financial advisers and investors should beware of imitations of risk-targeted funds, with a number of le...