Standard & Poor's has changed the way it assigns fund management ratings by using a 100% qualitative system as opposed to the previous system, which was 70% qualitative and 30% quantitative.
Its fund management ratings will now just be decided on interviews derived from a detailed evaluation of key factors such as a fund's management, corporate status and investment process, which Standard & Poor's believes contribute to long-term performance.
A quantitative process will be used only as an initial screen to look at the performance of the funds. However, the qualitative analysis will be the sole contributor to the fund management ratings.
Louise Collins, UK media manager at Standard & Poor's said: "The quantitative component of the ratings system has been reduced over the past few years from 40% to 30%. A qualitative process is a much better way to interpret and assess a manager's performance."
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