An Advanced Methodology for Fund Rating

Description

This article is a follow-up to an article on fund rating system published in The Journal of Performance Measurment.  That article provided a comparative analysis of a selection of leading rating systems, including Standard & Poor’s star rating, the Morningstar rating, and the Lipper Leader rating; it also addressed the properties required of an optimal rating system.  This article is dedicated to the EuroPerformance-EDHEC style rating, a European rating system introduced in 2005.  This rating was developed using state-of-the-art technology in portfolio risk and performance measurement and intends to bring new insights into the area of fund-rating.