TORONTO, Nov. 28, 2012 /CNW Telbec/ - Fundata Canada Inc. today announced it is launching a series of new Canadian fund indices. The Fundata Prospectus Risk Indices™ are designed to provide institutions, portfolio managers, advisors, and retail investors with a powerful tool for comparing performance and volatility among mutual funds with similar risk prospects.
"Prospectus Risk Rating is one of Fundata's most popular and unique data points," said Janny Vincent, president of Fundata Canada. "Fund managers, advisors, and their clients have become acutely aware of the importance of considering investment risks," she added. While standard risk metrics can provide a picture of an individual fund's historic performance, and peer-group indices can give a raw performance benchmark, an objective yardstick of performance among funds with similar Prospectus Risk prospects has been absent.
Among the 850 fund data points it tracks, Fundata Canada captures of 99.9% of the current Prospectus Risk Ratings of the more than 12,300 prospectus-issuing mutual funds in Canada. "Given our massive data warehouse of current and historical Canadian mutual fund information, the development of benchmark Prospectus Risk Indices was a natural progression for us," said Ms. Vincent.
The Fundata Prospectus Risk Indices have been rigorously constructed and intensively back-tested against historical data to ensure accuracy. Prof. Eric Kirzner, holding the John H. Watson Chair of Value Investing at the University of Toronto Rotman School of Management, acted as external consultant on the construction and testing of the indices. Prof. Kirzner is an acknowledged expert in complex derivative valuation, market operations and regulation, a pioneer in Canadian exchange-traded fund development, and co-developer of the popular FPX Indexes.
About the Fundata Prospectus Risk Indices
The Fundata Prospectus Risk Indices are a group of five equally-weighted indices that track the performance and risk-return profiles of constituent funds with three or more years since inception in each of five Prospectus Risk Rating groups: Low Risk, Low to Medium Risk, Medium Risk, Medium to High Risk, and High Risk. Index constituents are selected according to rigorous criteria that take into account factors that might skew results, including anomalous outliers and survivorship bias.
For more information on the Fundata Prospectus Risk Indices, please visit the Fundata website.
About Fundata Canada Inc.
Fundata Canada Inc. has been providing data aggregation and dissemination services to the Canadian media and financial marketplace since 1987. Fundata is a major player in the distribution of fund information in Canada. Our database contains over 22,000 investment funds, covering 850 data points. Fundata provides customized data feeds, top-shelf analytics, cutting-edge software tools, and seamless hosted web solutions for fund companies, back office systems, investment planners, banks, trust companies, resellers and redistributors, and online, print, and broadcast media channels.
With the development of the ground-breaking Fundata Prospectus Risk Indices, Fundata Canada is opening a new chapter in Canadian mutual fund performance analytics. For more information, visit http://www.fundata.com.
SOURCE Fundata Canada Inc.