Your Industry  

Chelsea and Albemarle launch ratings agency

Darius McDermott, managing director of London-based Chelsea Financial Services, said that, subject to FCA approval, the ratings website would launch in the new year and will be freely available to all investors seeking validation and guidance on fund choices.

He said: “The key differences with FundCalibre ratings is that a fund will either be rated as ‘elite’ or not at all; there are no multiple ratings, which many people, even in the financial industry, find confusing.”

To be considered for such a rating, a fund’s performance will be run through FundCalibre’s quantitative system – ‘AlphaQuest’ – that seeks to identify outperformance of the market during the past 10 years, and then estimates the likelihood of the fund manager outperforming in the future.

Article continues after advert

Mr McDermott added that there will be “no suspicion of conflict of interests”.

“FundCalibre will rate funds for nothing, and what you see is what you get,” he said.

Fund manager view

Peter Beckett, head of UK and international marketing for Schroders in London, said: “We like the predictive nature of the AlphaQuest quantitative screening process… which then leads to a simple ‘elite’ fund rating. The transparency and independence of FundCalibre should prove a winning combination for investors and intermediaries.”

Adviser view

Paul Spillane, owner of Spillane Independent Financial Services in Merseyside, said: “The no-payment idea is excellent from the perspective of being seen as truly independent, but I am concerned slightly about the rated-or-not concept, which I think is a bit harsh. I’d prefer to see gradations of the ‘elite’ rating.”