The TELOS Fund Rating (TFR)

This page contains information on the foundations and the modus operandi of TELOS Fund Ratings.

General Information

The TELOS Fund Rating is concerned with the analysis and evaluation of individual investment products, in particular mutual funds. TFR complements the range of rating products of TELOS and RCP.

How does TFR differ from other fund ratings?

TFR is a new kind of product that differs from other fund ratings by:

  • consistent qualitative analytical method
  • taking into account performance and risk considerations
  • no pre-selection by minimum requirements (regarding performance, age, fund volume); therefore suitable both for newer funds as well as established funds which had to start a new track record due to substantial changes in the team or the process
  • no fixation on peer groups, therefore no ranking character
  • strict orientation at investors’ needs

Which funds can be evaluated?

The rating methodology of the TELOS Fund Rating is suitable for a broad range of asset classes and investment strategies, among others:

  • all kinds of securities-based funds (equity funds, fixed income funds, balanced funds)
  • money market funds
  • funds of funds
  • hedge funds
  • funds of hedge funds
  • ...

What does the TFR statement mean?

The focus of TFR is the fund‘s quality:

  • In how far are the fund management processes suitable to manage the fund according to the characteristics declared by the investment company?
  • How consistent is the fund management in implementing the pursued and defined investment targets?
  • How stable is the investment team?
  • Are the historical performance results in accordance with the fund characteristics?
  • In how far is the funds suitable for the investors targeted by the investment company with respect to the investment horizon, risk classification, return expectation and capital preservation?

How is the evaluation performed and by whom?

The evaluation is based on a range of more than 100 qualitative criteria with the addition of further quantitative indicators. The individual evaluation is aggregated to an overall result. After more than 25 Manager and Investment Process Ratings, the TELOS rating analyst have substantial experience in analysing and evaluating investment processes and related topics.

The TELOS Rating Scale

AAA  The fund satisfies highest quality standards
AA  The fund satisfies very high quality standards
The fund satisfies high quality standards
The fund does not satisfy the TELOS quality standards
+ / -  further differentiate within a rating level (since February 2006, earlier ratings adjusted as appropriate)
All rights reserved. TELOS Fund Ratings are based on facts and informations taken from sources believed reliable, but we cannot warrant their accuracy and/or completeness. TELOS GmbH accepts no liability for any loss or damage arising from errors or matters of opinion expressed. Neither the presented figures nor the actual historical performance permit future predictions. Ratings and views presented are subject to revision and should not solely be relied upon for investment decisions. The Fund Rating is no offer or recommendation or request to buy, sell or hold the product(s) being discussed in this publication.