Montreal-based Desjardins Investments Inc. announced on Thursday its plans to reduce the risk level for 17 of its mutual funds.
These changes, which are expected to take effect on March 31, pending regulatory approval, come in response to the Canadian Securities Administrators’ (CSA) introduction of a new methodology that classifies risk. (A full list of the affected funds is available in its release.)
Under the CSA’s new measures, fund managers are required to assess risk using a methodology that relies on standard deviation. Before setting this mandate, which must be adopted by Sept. 1, firms had the choice of determining which methodology to use for assessing risk levels.
Read: CSA decides on standard deviation to classify riskiness of funds