Risk targeted solutions

Delivering ongoing suitability

With so many fund options and strategies available, one way you can filter this universe is through fund risk-ratings from specialist providers such as Dynamic Planner. Typically numbering between one (lowest risk) and ten (highest), these numbers aim to illustrate the level of risk a fund carries. However, these ratings do not always specify whether they are risk-profiled or risk target managed and there are important differences between the two.

Risk target managed

Risk target managed funds are managed according to strict asset allocation guidelines and/or volatility boundaries to ensure that the fund stays at the same level. For example, if the aim is to stay within the risk bands set by Dynamic Planner, a fund must conform to the strict asset allocation and risk limits they set such as the Canlife Portfolio funds.


In contrast, risk-profiled funds are allocated a risk level largely based on their current asset allocation and past behaviour. In other words a fund with a current risk rating of 3 could change to become a more risky 4 rating in the future, or vice versa. The Canlife Managed (0%-35% Shares) fund is risk profile 3.

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This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised and regulated by the Financial Conduct Authority.