According to a press release from RiskMetrics, the assessment incorporates fund managers’ proficiency in managing risk over long periods and identifies the mutual funds that have performed the best on a risk-adjusted basis, while maintaining the most stable level of risk over the last five years.
“This approach allows us to separate fund managers who govern risk from those who are erratic,” says RiskMetrics Group CEO Ethan Berman.
The “Best and Worst” Fund Evaluations are assigned within four style categories, which are determined by the risk profile of each fund:
Only those funds with the statistically highest and lowest scores will be displayed.
The evaluations rate all publicly traded equity mutual funds/investment trusts in the US and the UK.