Standard & Poor's (S&P), one of the world’s leading rating agencies, evaluates and ranks funds based on a very extensive qualitative evaluation. S&P awards from one to three As, where AAA is best.
In order to be rated by S&P, the fund has to be in the 20th percentile of its class, based on historical returns and risk levels. However, the rating also takes into account qualitative aspects such as:
- Manager continuity and experience
- Consistent management and investment approach
- Investment discipline
- Manager's knowledge and resources
- Analysis of the fund's portfolio and investment selections
