ESIF.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

6/7 High

6 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

20.2% p.a.

5-Year Horizon

Max Drawdown (5Y)

-23.6%

Deepest Drawdown

Sharpe Ratio

0.87

Good (0.5 - 1.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

Focused (35% – 50%)

28 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

Focused weighting: Top holdings drive a major share of fund returns.

Top 10 Holdings

44.4%

Focused

Effective Holdings

~42

of 85 holdings

Top Sector

98.2%

Financial Services

Top Region / Country

22.8%

United Kingdom

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Stable Long-Term Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+17.3%
3 Years	19.4%	-14.3%	1.4	+29.7%
5 Years	20.2%	-23.6%	0.87	+20%
10 Years	—	—	—	—

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 11.8

🟢 Established large fund (> 500M € AUM)

🟡 Moderate analyst coverage (12.4 analysts)

🔴 Severe sector concentration risk: 98% in "Financial Services".

⚠️ Industry concentration: 33% in "Banks - Diversified".

⚠️ Industry concentration: 33% in "Banks - Regional".

🔴 Dominant Cyclicality: 66% in cyclical industries – higher drawdown risk in recessions.

⚠️ Elevated Interest Rate Sensitivity: 95% in rate-sensitive or leverage-heavy industries (real estate, banks, utilities).

⚠️ Elevated Regulatory & Policy Risk: 98% in heavily regulated industries (defense, regulated utilities, healthcare policy).