Update on Risk Classification Methodology
The Canadian Securities Administrators mandate a risk classification methodology for mutual funds to determine the risk level of a fund. Picton Mahoney reviews its risk rating for each fund at least once a year and when a fund undergoes a material change. The changes in the risk rating of the Picton Mahoney Fortified Market Neutral Alternative Fund and the Picton Mahoney Fortified Inflation Opportunities Alternative Fund are the result of this process.
Explanation of the Changes
• Low
• Low-to-Medium
• Medium
• High
The new risk ratings are as follows:
| Fund | New Risk Rating | Previous Risk Rating |
| — | — | — |
| Picton Mahoney Fortified Market Neutral Alternative Fund | Low | Low |
| Picton Mahoney Fortified Inflation Opportunities Alternative Fund | Medium | High |
Investment Objectives, Strategies and Management Remain Unchanged
The Fund’s risk rating change is not a change to the investment objectives, strategies or management of the funds. The Canadian Securities Administrators mandate that the risk rating of a mutual fund be updated to reflect any changes to the investment strategy of the fund.
Importance of Understanding Risk
Understanding the risk level of a fund is crucial for investors to make informed decisions about their investments. The risk rating of a fund is based on its investment strategy and is intended to provide a general indication of the risk level of the fund. It is essential for investors to understand the characteristics of the fund and the potential risks associated with it.
Alternative Investment Options
Alternative mutual funds can only be purchased through a registered dealer and are available only in those jurisdictions where they may be lawfully offered for sale. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.
Important Disclosures
Commissions, trailing commissions, management fees, performance fees, and expenses are all associated with mutual fund investments. Please read the prospectus before investing.
About Picton Mahoney Asset Management
Picton Mahoney’s Commitment to Authentic Hedge Principles
Picton Mahoney Asset Management specializes in differentiated investment solutions and rules-based volatility management. The firm offers a full suite of investment solutions, including mutual and alternative funds, to institutional and retail investors across the country.
Investment Solutions
Picton Mahoney helps its clients fortify their portfolios based on experience honed over the years through different market cycles and investing environments. The firm is 100% employee-owned and has been in operation since 2004.
Awards and Recognition
Picton Mahoney has received numerous awards and recognition for its investment solutions and volatility management practices.
Conclusion
The risk rating changes of the Picton Mahoney Fortified Market Neutral Alternative Fund and the Picton Mahoney Fortified Inflation Opportunities Alternative Fund are the result of a thorough review of the Funds’ investment strategies and management. The changes to the risk ratings do not reflect any changes to the investment objectives, strategies, or management of the Funds. As always, investors should carefully review the prospectus and discuss their investment options with a registered dealer before making any investment decisions.
news is a contributor at MarketMelt. We are committed to providing well-researched, accurate, and valuable content to our readers.
