FUND RATINGS METHODOLOGY
Ratings Structure
MPF Ratings understands that employers and members want to better understand the performance dynamic of MPF Constituent Funds (“CFs”). MPFR Fund Rating is the industry’s leading indicator, allowing employers and members to efficiently review the investment performance of all MPF CFs.
MPF Ratings evaluates the investment performance of CFs on a relative basis, within a spectrum of CFs sharing similar investment strategies and asset allocations. The MPFR Fund Ratings, ranging from 1 to 5 ticks, offer an intuitive and easily recognisable visual guide.
Assessment Criteria
MPFR Fund Rating is a quantitative assessment combining both 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 CFs are tabulated and reported based on positioning within respective fund categories and CFs are assigned ticks relevant to their respective “quintiles”.
| MPFR Fund Rating | Assessment | Quintile |
|---|---|---|
|
Excellent | Top 20% |
|
Very Good | Top 40% |
|
Good | Top 60% |
|
Average | Top 80% |
|
Below Average | Other 20% |
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.
