The rating agency Scope has published a new methodology for assessing the quality of asset managers, which primarily invest in liquid, traditional investments such as equities and bonds, but also in liquid alternative strategies such as long/short equities.
In the five panels Company, Investment Management, Market Position & Product Performance, Operations, Compliance & Risk Management, as well as Distribution and Client Service, Scope evaluates 14 key criteria and a total of 46 sub-criteria. In order to determine appropriate and consistent scores, the rating criteria are applied to peer groups.
The criteria were calibrated on the basis of Scope's proprietary fund and manager database, which, for 25 years, has continuously collected and analysed data. Scope invites market participants to comment on the new methodology during the "Call for Comments" phase until 08.06.2017. After completing the "Call for Comments" phase, the new methodology comes into effect and replaces FERI EuroRating Services AG's existing asset management rating methodology.
Managers of real assets such as real estate, renewable energies and infrastructure are still evaluated according to the rating methodology for asset managers of alternative investments.