ETF Risk Ratings Corrected
Ninepoint Partners refiles annual reports for five HighShares ETFs to correct risk ratings
Ninepoint Partners LP has refiled annual performance reports for five of its HighShares ETFs, correcting an "inadvertent misstatement" in the funds' disclosed risk ratings for the year ended December 31, 2025. Financial Post reported the corrected filings are now available on SEDAR+, Canada's public securities disclosure system.
The company stressed that no changes were made to the ETFs' prospectuses or any other legal disclosure documents. The fix applies only to the Annual Management Reports of Fund Performance, known as MRFPs — the yearly summaries investors use to check how a fund performed and how risky it was.
What Went Wrong With the Risk Ratings
In Canada, every ETF must carry a risk rating — Low, Low to Medium, Medium, Medium to High, or High. These labels help investors and advisors decide if a fund fits their comfort level. Fairview Post noted that Ninepoint, one of Canada's leading alternative investment managers, filed the original 2025 MRFPs in March 2026. Somewhere in that process, the risk ratings for five HighShares ETFs were stated incorrectly.
The firm described the error as inadvertent — meaning accidental rather than deliberate. The ratings are calculated using a fund's 10-year standard deviation, a measure of how much returns bounce around over time. If that calculation was applied incorrectly, the published rating could land in the wrong category entirely.
Why a Wrong Risk Label Is a Real Problem for Investors
Risk ratings are not just labels — they shape real financial decisions. Advisors use them to match funds to clients. If a fund was listed as "Low to Medium" risk but should have been "Medium," some clients may have bought a product that was technically too risky for their situation. Sault Star reported the corrected MRFPs are now live on SEDAR+ for investors and advisors to review.
The five affected funds are estimated to hold between $450 million and $600 million in combined assets. The HighShares brand targets retirees and income-focused investors — people who especially depend on accurate risk labels to protect their savings.
Ninepoint Acts Quickly to Limit Regulatory Fallout
By self-reporting and filing the correction on June 11, 2026 — roughly 72 days after the standard 90-day filing window closed — Ninepoint positioned the move as a proactive transparency measure. Self-reported errors in Canada typically avoid major fines from regulators like the Ontario Securities Commission, though minor administrative fees may still apply. Prince George Post confirmed the corrected documents are accessible through SEDAR+ at www.sedarplus.ca.
Ninepoint is framing the event as a minor clerical fix. The firm emphasized that the legally binding prospectus — the core document governing how each fund is run — was never wrong. Only the annual summary report contained the error.
What Investors and Advisors Should Do Now
Advisors at major brokerages are expected to review the updated MRFPs and check whether any client portfolios need to be adjusted. If the corrected ratings are higher than originally reported, conservative investors may need to reduce their exposure to remain within their personal risk limits. Paris Star Online and Goderich Signal Star both noted the corrected filings are now publicly available for download.
Investors holding any of the five affected HighShares ETFs should download the revised MRFPs from SEDAR+ and compare the corrected risk rating to their own risk tolerance. If the new rating does not match, speaking with a financial advisor is the recommended next step.
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