Risk information

Saving in funds involves both a possibility that the value will increase and a risk that the value will decrease. The historical returns of the funds are no guarantee of future returns, and it is not certain that you will get back the invested capital. 

Risk factors that we monitor

Market risk, interest rate risk, currency risk, credit risk, liquidity risk and sustainability risk are examples of risk factors that the asset management team takes into consideration. Market risk refers to the risk of a negative value development on relevant securities markets as a whole, see further below. Interest rate risk refers to risk of a negative value development due to changes in current market interest rates. Currency risk is the risk of a negative development of the exchange rate of the Swedish krona in relation to foreign currencies. The risk that the organization that issues shares, bonds etc. cannot fulfil its payment obligations towards those who invest in these securities is called credit risk. Liquidity risk refers to the risk that, due to low turnover on current securities markets, investments cannot be liquidated in the desired time or at the desired place.

Funds that predominantly invest in interest-related asset classes are less exposed to fluctuations in value development. This entails less risk of a negative, but also less chance of a positive, value development. Share-related asset classes are more exposed to fluctuations in value development, which entails an increased risk of a negative value development, but also an increased chance of return.

Classification by degree of risk

All of Ruth Asset Management's funds are rated in accordance with the European Banking Authority's (EBA) seven-level risk and return indicator. The different "risk classes" show the relationship between risk and possible return based on how the respective fund's return has varied over time. The classification makes it possible to compare risk and possible returns not only for Ruth Asset Management's various funds, but also for all other fund companies' funds, which are classified in the same way. However, as the indicator is based on historical data, the classification does not constitute a future guarantee of future risk/return.