MARC has finalised its methodology for rating investment managers following market consultation. The Investment Manager Rating (IMR) criteria is a new sector-specific rating methodology which outlines MARC’s analytical approach to assessing the quality of the investment or fund management company and its vulnerability to financial and operational failure.

MARC would like to thank market participants for their input. In finalising the criteria, MARC did not make any material changes to the content of the exposure draft. As highlighted at the exposure draft stage, the criteria accommodates a wide variety of investment management firm structures and business models, ranging from smaller boutique portfolio management companies to larger fund management companies which exhibit greater scale and diversity in terms of asset classes managed.

MARC believes that investment manager ratings will assist investment managers in discharging their fiduciary duties to investors and meet the increasing demand for accountability and good corporate governance. In this way, investors can be more confident about the investment manager’s ability to deliver on investment mandates and maintain compliance with applicable laws, regulation and internal policies. MARC is confident that an IMR can become a catalyst for fund managers to achieve even better performance and improved accountability.

The rating methodology can be accessed on MARC’s website at Investment Manager Rating Criteria.