New Tenure Review designation provides clarity on fund ratings
Standard & Poor's Fund Services has announced a new Tenure Review (TR) designation in order to provide greater clarity to the market around its fund ratings.
The designation will be assigned to funds whose managers do not have the minimum 12 months investment management experience required to be considered for a full S&P fund management rating. This will often occur as the result of a change in fund manager across asset classes, or the appointment of an external fund manager whose relevant investment management experience is less than 12 months.
The following six funds have been assigned the new TR designation: BlackRock Global Funds Emerging Europe Fund, Fortis L Fund Equity Telecom World Fund, New Star Investment Funds - Global Financials Fund, Old Mutual Equity Income Fund, Old Mutual Extra Income Fund and Pioneer Funds - Global Trends Fund.
Once a fund manager has achieved the 12 months' relevant experience required, the fund will be assigned a rating within the range A-AAA or be moved into the wider Not Rated category.
Chief quality officer Linda Jane Coffin said the aim was to provide greater clarity and transparency to the market around ratings and criteria. "The new TR designation will provide further insight into funds that do not currently fulfill the minimum fund management rating criteria. It will also highlight funds under new management that could, in the future, have an encouraging qualitative outlook under the direction of the new fund manager, by distinguishing these funds from those which are Not Rated for other reasons such as performance and process."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected