Author Topic: Asset Manager Rating Scale & Definitions (PACRA)  (Read 1383 times)

Naeem Amjad

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Asset Manager Rating Scale & Definitions (PACRA)
« on: May 26, 2019, 11:34:12 PM »
Asset Manager Rating Scale & Definitions (PACRA)

An independent opinion on the quality and expertise deployed by an asset management company

AM1

Very high quality. Asset manager meets or exceeds the overall investment management industry best practices and highest benchmarks.


AM2 / AM2+ / AM2++

High quality. Asset manager meets high investment management industry standards and benchmarks with noted strengths in several of the rating factors.


AM3 / AM3+ / AM3++

Good quality. Asset manager meets investment management industry standards and benchmarks.


AM4 / AM4+ / AM4++

Adequate quality. Asset manager demonstrates an adequate organization that meets key investment management industry standards and benchmarks.


AM5

Weak. Asset manager does not meet the minimum investment management industry standards and benchmarks


Note:   The ratings are on a scale of AM1 to AM5 with AM1 being the highest. + or - may be appended to a rating to denote relative status within major rating categories bar the AM1 and AM5 rating categories.





Asset Manager Rating Scale & Definitions (JCR-VIS)

An independent opinion on the quality and expertise deployed by an asset management company

AM1

Asset manager exhibit Excellent management characteristics.


AM2 / AM2+ / AM2++

Asset manager exhibit Very Good management characteristics.


AM3 / AM3+ / AM3++

Asset manager exhibit Good management characteristics.


AM4 / AM4+ / AM4++

Asset manager exhibit Adequate management characteristics.


AM5

Asset manager exhibit Week management characteristics.




MFR 1 Star: Week Performance (Last 10%)
MFR 2 Star: Below Average Performance (Next 22.5%)
MFR 3 Star: Average Performance (Next 35%)
MFR 4 Star: Good Performance (Next 22.5%)
MFR 5 Star: Very Good Performance (Top 10%)

AAA(f): Highest degree of stability in Next Asset Value; Risk is negligible with very low sensitivity to changing economic conditions
AA+(f), AA(f), AA-(f): Highest degree of stability in Next Asset Value; Risk is modest but may veryslightly from time to time because of changing economic conditions
A+(f), A(f), A-(f): Moderate degree of stability in Next Asset Value; Risk factors may very with possivle changes in the economy
BBB+(f), BBB(f), BBB-(f): Adequate degree of stability in Next Asset Value; Risk factors are considered variable if changes occure in the economy
BB+(f), BB(f), BB-(f): Low degree of stability in Next Asset Value; Risk factors are sensitive to changes in the economy
B(f): Very Low degree of stability in Next Asset Value; Risk factors are capable of fluctuating widely if changes occur in the economy

Note:   The ratings are on a scale of AM1 to AM5 with AM1 being the highest. + or - may be appended to a rating to denote relative status within major rating categories bar the AM1 and AM5 rating categories.

« Last Edit: February 24, 2021, 11:56:45 AM by Naeem Amjad »