Methodology

Term Definition
Risk The calculation of risk follows that of standard deviation. For analysis period that is less than a year daily price/return data is used and for a year and above, weekly price/return data is used. The analysis period for risk will start from weekly onwards.
Reward-to-Variability Ratio (RVAR) William F. Sharpe, winner of the 1990 Nobel Prize in Economics, is a Professor of Finance, Emeritus at Stanford University’s Graduate School of Business. In addition, he is also a trustee of the AXA Rosenberg Mutual funds and serves as Chairman of the Board of Financial Engines, Incorporated. Years back, Dr Sharpe introduced RVAR as a measurement for the performance of mutual funds (unit trust) which is also commonly known as Sharpe Ratio, Sharpe Index or Sharpe Measure.
Ranking Grade The funds are ranked based on their returns/risk/reward-to-variability. The numbers (after each grade) are the position of the funds within the scope.

Quartile Grade Remark
1st Q A Excellent
2nd Q B Good
3rd Q C Average
4th Q D Below Average

Example: There are 12 funds in a chosen scope, the ranks are as follow:

1st Q: A1, A2 & A3
2nd Q: B4, B5 & B6
3rd Q: C7, C8 & C9
4th Q: D10, D11 & D12

If a fund is ranked B5, it means that within the 12 funds, it is in the 5th position under Grade B category.

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