Ranking of Funds

 

FUNDCLASS offers an objective analysis of risk and fund performance, which leads to a perceptive ranking of the totality of funds available on the market.

 

  • Performance achieved by one fund depends on the underlying strategy and consequently on the risks which are embedded
  • Risk profile for each fund is computed using the APT tools and data of the FIS group. Approximately 200 homogeneous categories are needed to cover all types of risk profile
  • Ranking takes into account the risk level born by the investor
  • We compute the ranking of funds based on the RAP in each category
  • Inside a category, the Risk Adjusted Performance (RAP) of each fund is:

 

 

 

Performance and RAP are evaluated on a one year period.

  • Performance is compared versus competitors rather than benchmarks
  • The process is done every quarter and stored for each fund

 

 

Rating of Funds

 

Before comparing funds, it is essential to establish coherent sub groups within the funds population.

 

FUNDCLASS has adopted a "buy side" approach, meaning that we consider that a fund can be compared to another fund if it represents a similar risk profile.

 

 

  • Categorization determines the universe of reference of the rival funds
  • The rating must be established in relation to the performance of competing funds belonging to the same category
  • The rating must reflect performance in the medium term
  • A fund which has been ranked over 12 consecutive one year periods is given a mark equal to its average decile
  • FUNDCLASS has defined a scale of Rating based on the average decile

 

 

 


 

 

 

 

Rating of Asset Management Companies

 

Every European Asset Management Company having a fund is rated. In order to create coherent groups, categories are defined by number of rated funds.

 

  • Scale evaluation for rating funds:


 

 

 

 

  • Considering the entire set of funds rated for one Asset Management Company, we calculate its corresponding weighted average value:

 

 

 

 

  • We compute the avarage mark of all Asset Management Companies
  • We define 8 categories according to the number of rated funds:

 

 

      Smallest Asset Management Companies, with less than 4 funds held, will not compete.

 

 

 

  • In each category, the European winner is the Asset Management company with the highest avarage mark.