Summary:

Citywire Fund Manager Ratings provide a reliable and robust guide for investors to see which fund managers have the best risk-adjusted performance records.

How are the Ratings calculated?

Citywire Fund Manager Ratings are based on the Citywire Manager Ratio – a figure that reflects how much 'added value' a manager delivers. This is defined as how much outperformance against the manager’s benchmark is delivered for each unit of risk assumed.

So it’s not just about who has the best performance numbers?

No. It is quite possible that a manager has delivered great numbers but has taken huge risks in the selection of stocks in his or her fund. It is doubtful whether such a manager could sustain such performance

How good do you have to be to be rated?

A Citywire Fund Manager Rating is a coveted award. There is no “quota” of rated managers but on average there are around 170 rated managers at any one time from around 870 managers who run 1,300 retail funds within 24 key asset sectors as defined by the Investment Managers’ Association. Within the ranks of rated managers, those designated AAA have produced the strongest performance followed by AA and A.

What period is covered?

Citywire Fund Manager Ratings are updated each month and are based on a

manager’s track record over the previous 36 months. At each update, the latest month is added and the oldest month drops out

Do Citywire Fund Manager Ratings take other factors into account?

Citywire Fund Manager Ratings are entirely based on mathematical performance records and amounts of risk taken. The Ratings are not based on any subjective opinion of a manager’s ability. All the data has been checked and approved by an independent firm of actuaries.

What happens if a fund manager changes funds?

The personal performance records behind the Citywire Manager Ratings take into account career moves, career breaks and switches in funds managed, as well as cases where managers run two or more funds.