FUND RATINGS METHODOLOGY
Ratings Structure
MPF Ratings understands that employers and members want to better understand the performance of MPF Constituent Funds (“CFs”). MPF Ratings’ fact based MPFR Fund Rating is the industry’s leading performance indicator, allowing employers and members to efficiently review the investment performance of all MPF CFs.
MPF Ratings factually ranks the investment performance of CFs on a relative basis, within fund categories containing similar investment strategies and asset allocations. The MPFR Fund Rating is translated into a range from 1 to 5 ticks to translate factual rankings into an intuitive and easily recognisable visual guide.
Assessment Criteria
The fact based MPFR Fund Rating is not an opinion nor advice. The assessment is a quantitative, combining both actual CF absolute and risk-adjusted performances over the past 1, 3, 5 and 10 years. Consistent with long term investing, larger weights are assigned to longer history. The overall performance of the CFs are tabulated and reported based on the actual positioning within respective fund categories and CFs are then assigned ticks relevant to their respective performance “quintiles”. Where a fund category has too few funds to categorize into “quintiles” then there shall be no assessment.
| MPFR Fund Rating | Quintile |
|---|---|
|
Top 20% |
|
Top 40% |
|
Top 60% |
|
Top 80% |
|
Other 20% |
|
Category too small |
MPF Ratings Limited
The assessment we make of CFs and their subsequent rating is of a general nature only and is prepared without taking into account any reader’s objectives, financial situation or needs. The information is not guaranteed to be accurate or complete. Because of this you should, before acting on the information, consider its appropriateness to your own financial objectives, situation and needs and you may wish to obtain personal financial advice on the matter from a financial adviser. Before you make a decision regarding any product discussed in this report you should obtain and consider a copy of the relevant MPF Scheme Brochure and Fund Fact Sheet from the product issuer.
