Scope Analysis, a specialist in the analysis and rating of asset management companies and certificate issuers, as well as mutual funds and alternative investment funds, has published an updated Asset Management Rating Methodology for Alternative Investments.
Asset managers and investors can comment on the new methodology until 23 April 2019. The final version of the new rating methodology will be published after the commenting phase.
With the adjustments to the rating methodology, there will be an even stronger focus on the concerns and needs of investors. For example, the skills and competencies in the areas of investor reporting and customer service will be weighted to a significantly greater extent. The aspect of diversification in the business areas of an asset manager will be completely removed. This means that there will no longer be any valuation differences for asset managers solely on the basis of whether they specialise in an asset class or serve a broad spectrum of asset classes. Additionally, in terms of geographic reach, Scope will increase the importance of employees present in the respective target markets. This change also allows asset managers specialising in geographical sub-markets to achieve the highest score for this criterion.
With regard to ESG, Scope has aligned the requirements to new regulatory developments (CSR Directive) as well as established standards (GRI Reporting Standards). In addition, the weighting of ESG will be doubled. This reflects the growing importance of sustainability aspects for investors.