Asset Manager Grading

An asset manager grading is assigned to the entire asset management organisation or within a larger asset managers, to specific operational units or geographies. The grading is assigned on an alphanumeric scale based on Ind-Ra's assessment of the manager's investment and operational platform. The assessment focuses on five main pillars —company, controls, investments, operations, and technology. The top three gradings apply to those asset managers that meet or exceed the standards typically applied by domestic institutional investors.

Ind-Ra Asset Manager Grading Scale

AMG scaleAMG definitions
Above institutional standardsIND AM1The asset manager has an investment platform and operational framework that Ind-Ra considers superior to the standards applied by domestic institutional investors.
IND AM2The asset manager has an investment platform and operational framework that Ind-Ra considers strong relative to the standards applied by domestic institutional investors.
IND AM3The asset manager has an investment platform and operational framework that Ind-Ra considers good relative to the standards applied by domestic institutional investors.
Below institutional standardsIND AM4The asset manager has an investment platform and operational framework that Ind-Ra considers to contain some weaknesses that prevent it from meeting the standards applied by domestic institutional investors.
IND AM5The asset manager has an investment platform and operational framework that Ind-Ra considers to contain material deficiencies or suggests weak prospects for commercial viability.

Limitations

Specific limitations relevant to the grading scale applied to asset managers include:

  • The asset manager gradings relate to specific operational units and specific geographies within an asset manager – they do not necessarily relate to legal entities.
  • The gradings do not predict a specific likelihood of asset manager failure over any given period.
  • The gradings do not opine on the market value of any asset manager's investments or that asset manager's own securities, or the likelihood that these values may change.
  • The gradings do not opine on the liquidity of the asset manager's investments or that asset manager's own securities.
  • The gradings do not opine on the suitability or otherwise of an asset manager for investment or any other purposes.
  • The gradings do not opine on the investment strategies implemented by, or to be made, the asset manager.