Best Fund Over 10 Years
Each year the financial analyst CFS Rating publishes its annual guide to the 300 best mutual funds. The “Over 10 Years” section in the yearbook covers the companies that manage investors’ assets most successfully over the long term, identifying products and firms that have achieved satisfactory results over the last 10 years.
An efficiency indicator was created for this purpose that uses the Modified Sharpe Ratio to give a rating over a longer time horizon. The indicator measures the returns for each point of volatility, or risk, net of inflation.
10-year results for Etica Obbligazionario Misto and Etica Bilanciato
Once again this year Etica Sgr appears in the yearbook. Etica Obbligazionario Misto and Etica Bilanciato were judged the Best Funds Over 10 years in the Mixed and Balanced – Equity-Oriented categories as the most efficient funds in the over 10-year class available in Italy.
The funds’ success reflects the strong long-term growth in assets under management and the average annual return over the last 10 years. In particular:
- Etica Obbligazionario Misto recorded an average 10-year annual return (calculated to the end of 2018) of 3.3%, beating the Fideuram index for the period which measures the average performance of Italian funds in the same Assogestioni category (Mixed);
- Etica Bilanciato recorded an average 10-year annual return (calculated to the end of 2018) of 8.17%, beating the Fideuram index for the period which measures the average performance of Italian funds in the same Assogestioni category (Balanced).
CFS Rating Methodology
To find the Best Fund Over 10 Years each fund is assessed within a specific category, with particular focus on retail funds with a 4 or 5 star rating on 31 December 2018.
The stars are attributed to the fund primarily on the basis of two indicators:
- Sharpe ratio (risk/return ratio)
- Alpha (ability to systematically outperform the benchmark).
Other factors taken into consideration:
- Persistence of results
- Overall performance in the last year
- Level of efficiency over five years
- Capacity to limit investment risk
- Distinctiveness of the management philosophy
For more information on the rating criteria please visit the CFS Rating website.