Funds is one of the core competences of vwd group. We are the leading company in collecting, enriching, analysing, creation, storing, distributing and publishing investment fund information.
To analyse and value the investment funds, vwd group created a fund rating, the vwd diamond rating.
All funds within the vwd group fund universe with a quote history of 5 years are possible candidates for receiving a rating. Today the universe consists of funds registered in the German, Austrian and Switzerland markets as well as BeNeLux.
The rating is purely quantitative, there is no subjective component. It is a descriptive, backward-looking measure of historical performance.
The rating follows the classification of the European Fund Classification Forum (EFCF), a working group of the European Fund and Asset Management Association (EFAMA).
Consistency is a measure that tracks the nature of a fund‘s overall return. It is used to address whether the returns were achieved steadily over time, or whether the fund had an abnormal gain over a short period that has skewed performance up.
Performance is a measure that tracks the overall return of the fund. Each fund is ranked within its category on the basis of its 5-year return.
Volatility is a measure of the degree to which the fund‘s periodic returns vary either side of its mean return. The larger the fluctuation, the more risky the fund is. This measure is used to see how much risk investors take when entering a fund.
Alpha is a measure of the fund‘s returns against its benchmark. This measure is used to see if the fund can provide superior excess returns to that of the benchmark, hence a key input in evaluating whether the fund has outperformed.
Capital Preservation refers to absolute losses at periods when the fund underperforms a risk-free guaranteed investment.
If you have any questions about the
vwd diamond rating, feel free to contact
Richard de Rooij.
Phone: +49 32 3 40007-10