An Agusto & Co FUND RISK rating is based on a quantitative assessment of a portfolio’s exposure to downside (loss of principal) risk.

Rating Methodology
To arrive at a rating, the risk contribution of each investment made by the fund is calculated based on its exposure to:

• credit risk
• interest rate risk
• equity (pricing) risk
• currency risk
• liquidity risk

The final rating is derived from the weighted average risk contribution of the portfolio of investments.

In instances where portfolios are managed on the balance sheets of the fund sponsor (i.e. not bankruptcy remote from a legal standpoint), the fund risk rating will be limited to the credit rating of the fund sponsor.

Fund Risk Score: Process

Rating Definitions

Aaa (f) Minimal to nil exposure to downside (loss of principal investment) risk in normal market conditions

Aa (f) Minimal to low exposure to downside (loss of principal investment) risk in normal market conditions

A (f) Low to moderate exposure to downside (loss of principal investment) risk in normal market conditions

Bbb (f) Investment grade, moderate exposure to downside (loss of principal investment) risk in normal market conditions

Bb (f) Speculative, medium to high exposure to downside (loss of principal investment) risk in normal market conditions

Ccc (f) Speculative, high exposure to downside (loss of principal investment) risk in normal market conditions