Risk
Each Fund has a targeted level of risk which is measured in terms of sensitivity to volatility or in other words the target maximum loss that a fund could make and therefore an investor is willing to accept in any one year. The target sensitivity to volatility does not represent a guarantee that this will be the maximum downside, but is purely an indication of the objective of the fund. We calculate risk by looking at historic data which is not always a good guide for the future. We also need to exercise judgement about current conditions. The four funds offer a range of risk profiles from low risk to high risk. You should take advice from your Independent Financial Adviser (IFA) or an investment professional if you are not sure which level of risk is appropriate for you.
Performance
The PanDYNAMIC Funds are recently launched and no performance record is available. It is expected that they will perform very similarly to the PanDYNAMIC Model Portfolios already available from IFAs. Past performance is not necessarily a good indication of likely future performance. A simulation exercise has been carried out using Pertrac performance modelling software and data supplied by Thomson Reuters and Bloomberg for the period from 1999 to 2009 to assess the risk characteristics of each fund.
