Fundata creates series of risk indices

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.

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