For the winners selection we use methodology which consists of three steps:
Ranking of funds
Approximately 210 homogeneous categories are needed to cover all type of risk profile. Ranking takes into account the risk level born by the investor. We compute the ranking of funds based on the Risk Adjusted Performance (RAP) of each category. Performance is compared with competitors rather than benchmarks. The process is done every quarter and stored for each fund.
Inside a category, the RAP of each fund is:
Performance and RAP are evaluated on a one year period.
Rating of funds
Before comparing funds, it is essential to establish coherent sub groups within the fund population.
FUNDCLASS has adopted a “buy side” approach, meaning
that we consider that a fund can be compared to another fund
only if there is a similar risk profile.
Categorization determines the universe of reference of the rival
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.
Funds are ranked every quarter on their last 12 months performance. Funds which have been ranked by us for 12 consecutive quarter are then given a mark equal to its average decile.
FUNDCLASS has defined a scale of Rating based on the average decile.
Rating of Asset Managers
Every European Asset Manager having a rated 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 Manager, we calculate its corresponding weighted average value :
We compute the average mark of all Asset Managers and define 8 categories according to the number of funds held :
In each category, the European winner is the Asset Manager with the highest average mark.
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