1st step: Preselection
In the selection process "Best of Funds", more than 1,600 international equity funds are continuously allocated to 40 different categories. These are subdivided into 29 regions and 12 sectors/themes and updated once a month.
The fund manager's investment style is taken into account when comparison groups are assigned. Therefore, there is not only one ranking per investment region, but several. After all, it makes a big difference whether a fund invests in stocks with high profit potential (growth values) or whether it selects primarily favourably rated, large cap stocks (value shares) in the same investment region. These funds will react differently in different market situations.
2nd step: Technical analysis
In comprehensive tests, a total of 15 return and risk factors were pooled together to a meaningful analysis model. The source of data used is the Standard & Poor's database.
3rd step: Qualitative analysis
Aside from risk & return figures relating to the past (such as e.g. performance, Sharpe ratio, etc.), the assessment also takes into account an analysis of the environment of the fund management companies and the acting persons. We evaluate the structure and consistency of the fund management, internal controlling, information policy and similar factors. These factors can be more significant for a prognosis than a purely statistical analysis.