03 Aug 2020
Our reputation is built on our fund rating process and methodology. All the funds on our rated fund list have been put through the full screening process and create the universe from which we select funds for use in our portfolios, including the new Active 2-10 Managed Portfolio Service range.
In each investment sector we look at a range of performance and risk measures. Funds that display attractive performance and risk characteristics are taken forward for further analysis. Quantitative and qualitative measures are then used to ensure that a fund’s performance and risk statistics have been produced by a robust investment and risk management process from a strong, skillful fund manager and team. These factors combine to produce a picture of how a fund may perform in the future.
We look at statistical risk measures to further understand funds and how they operate. We consider funds in relation to their benchmark and sector and also in relation to their objectives. Specifically we consider volatility, Sharpe ratios, information ratios, value at risk, maximum loss and maximum drawdown and measure each fund against its peers and an appropriate benchmark in order to identify funds performing in line with expectations.
The charges taken by the fund manager can impact substantially on a fund’s returns, particularly in low return and falling market conditions. We use the ongoing charges figure (OCF) as our preferred measure and look for funds to have an appropriate OCF based on their asset class exposure, aims and objectives and investment strategy.
When we identify a fund that requires more in-depth analysis we will issue a detailed fund questionnaire for completion by the fund management team which covers all the main areas that we feel require investigation and we set up meetings to fully assess the team and their investment philosophy. Where a fund looks attractive from an initial research perspective, we then move on to screen from a qualitative perspective, enabling us to look in detail at how a fund operates and how robust the investment process is.
Monitoring of the fund lists and the procedure for making changes is a crucial and decisive part of the process. The investment sectors and their rated funds are reviewed formally on a rolling three-month basis and in the case of funds that are already rated, we monitor the performance and risk information to make sure that funds are performing and behaving as we would expect, given the prevailing market and economic conditions.
Our ratings are a badge of quality, backed by our experience and reputation. Over 15,000 advisers across the UK now use our market-leading fund ratings and we offer the widest set of recognised and respected ratings in the marketplace.
This is intended for investment professionals and should not be relied upon by private investors or any other persons. Past performance is not a guide to future performance. The value of investments and any income from them can fall as well as rise, is not guaranteed and investors may get back less than they invest.
RSMR MPS is provided by RSMR Portfolio Services Limited. RSMR Portfolio Services Limited is a limited company registered in England and Wales under Company number 07137872. Registered office at Number 20, Ryefield Business Park, Belton Road, Silsden BD20 0EE, RSMR Portfolio Services Limited is authorised and regulated by the Financial Conduct Authority under number 788854. RSMR is a registered trademark.