Scope publishes new Investment Team Rating methodology

The methodology presents the scoring system and assessment criteria used by Scope to evaluate the quality and competence of individual investment teams within asset management companies. Comments on the new methodology are welcome until 23 August 2018.

Scope has published a new rating methodology for evaluating the quality and competence of individual investment teams within asset management companies.

The methodology is applied to investment teams which predominantly invest in liquid, traditional instruments such as shares and bonds, as well as in liquid alternative strategies such as long/short equities.

The new methodology expands Scope’s rating spectrum. Until now, Scope evaluated asset managers in their entirety as well as in individual asset classes (investment centres). As a result of the new methodology, a focussed assessment of individual investment teams is now possible.

The evaluation focuses on industry experience and team history, investment process and track record, as well as the research process and the integration of IT. Specifically, the rating of investment teams is based on 16 assessment criteria, distributed among the following four panels:

1. Investment professionals
2. Investment process and research
3. Market position and performance
4. Other internal and external resources

The rating criteria are applied in the context of the relevant peer groups to ensure appropriate and consistent scores are given across the diverse sector of liquid investments.

The calibration of several criteria is carried out by means of Scope’s proprietary fund and manager database. It is based on data which has been continuously collected and analysed for over 25 years.

The scale used covers eleven rating levels and ranges from AAA_AMR to C_AMR. The rating categories AAA_AMR to BBB_AMR are issued to investment teams which, in Scope’s view, have met the minimum industry standards.

Scope invites market participants to comment on the new methodology until 23.08.2018. Following the “call for comments” phase, the new methodology will come into effect and complement Scope’s three existing Asset Management Rating methodologies.

Download Investment Team Rating Methodology

The methodology presents the scoring system and assessment criteria used by Scope to evaluate the quality and competence of individual investment teams within asset management companies. Comments on the new methodology are welcome until 23 August 2018.

Scope has published a new rating methodology for evaluating the quality and competence of individual investment teams within asset management companies.

The methodology is applied to investment teams which predominantly invest in liquid, traditional instruments such as shares and bonds, as well as in liquid alternative strategies such as long/short equities.

The new methodology expands Scope’s rating spectrum. Until now, Scope evaluated asset managers in their entirety as well as in individual asset classes (investment centres). As a result of the new methodology, a focussed assessment of individual investment teams is now possible.

The evaluation focuses on industry experience and team history, investment process and track record, as well as the research process and the integration of IT. Specifically, the rating of investment teams is based on 16 assessment criteria, distributed among the following four panels:

1. Investment professionals
2. Investment process and research
3. Market position and performance
4. Other internal and external resources

The rating criteria are applied in the context of the relevant peer groups to ensure appropriate and consistent scores are given across the diverse sector of liquid investments.

The calibration of several criteria is carried out by means of Scope’s proprietary fund and manager database. It is based on data which has been continuously collected and analysed for over 25 years.

The scale used covers eleven rating levels and ranges from AAA_AMR to C_AMR. The rating categories AAA_AMR to BBB_AMR are issued to investment teams which, in Scope’s view, have met the minimum industry standards.

Scope invites market participants to comment on the new methodology until 23.08.2018. Following the “call for comments” phase, the new methodology will come into effect and complement Scope’s three existing Asset Management Rating methodologies.

Download Investment Team Rating Methodology