Citywire Fund Manager Ratings

Citywire’s Fund Manager Ratings identify the individual managers who have the best risk adjusted personal performance track records over 3 years and highlights the funds they are currently managing.

Of the 1000+ active fund managers in Citywire's UK database, less than 5% receive a AAA rating and less than 20% receive any rating at all.

-          The Citywire Manager Ratings are based on what is referred to as the Citywire Manager Ratio (equivalent of the Information Ratio). This takes into account career moves, career breaks and switches in funds managed. The figure reflects how much 'added value' in terms of outperformance against the benchmark the fund manager delivers for each unit of risk assumed (where risk is defined as not mirroring the index's return).

-          All managers who run funds within 25 IMA unit trust sectors are considered for a Citywire Manager Rating. Ratings are awarded on the basis of achieving, or exceeding, certain performance thresholds based on their 36-month Citywire Manager Ratio across all sectors.

-          Managers are arranged in order of their Citywire Manager Ratio from highest to lowest. From here a cut off point is created, with the minimum required Citywire Manager Ratio set at 0.25, and only those above this level are considered for a Citywire Manager Rating.

-          The managers who clear this first hurdle then have their ratios averaged again and are separated into two pools. This procedure is repeated again for the top pool to produce three classes of managers who achieved a minimum Citywire Manager Ratio of 0.25.

 -          Only managers within the top three classes will receive a AAA, AA or A Citywire Manager Rating.

The methodology adopted by Citywire have been approved by AKG Ltd, a leading firm of actuaries.