Fitch Ratings has launched a new type of fund rating, which combines its in-house qualitative fund analysis with rankings and performance data from Lipper.
On a six-tier scale these fund quality ratings aim to provide an independent, forward-looking assessment of a fund's key performance and risk attributes and consistency of longer-term returns. Comparisons are relative to the peer group or benchmarks.
While existing funds are rated from excellent to inadequate, funds without a three-year performance record may be rated qualifying.
Fitch says the ratings focus on the fund manager's investment process, key fund performance drivers, risk management, and the quality of the fund's operational infrastructure. The ratings will be distributed globally and will be available on Thomson Reuters' wealth platforms.
"There are over 35,000 funds available to investors in Europe alone and Ucits developments will amplify cross-border distribution," says Aymeric Poizot, head of fund and asset management ratings for Europe, Middle East and Asia-Pacific.
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