Award-winning funds

Investment fund ratings

Investors have over 9,000 funds to choose from in Switzerland. How can interested customers find the right one with so many available? Fund ratings provide help with decision-making.

  • With such a wide selection of funds available, fund ratings provide guidance and help with decision-making. They provide a quick overview of the quality of funds and fund managers. Despite the ratings, it is not easy to assess fund quality as it can change over time, and the ratings are also usually carried out over different time periods.

    PostFinance has opted for Morningstar’s overall rating. This can be viewed for each fund at  www.postfinance.ch/fundrange.

  • Fund ratings evaluate funds based on pre-defined criteria. Individual funds are assessed using specific criteria and classified according to a rating scheme. Each fund is awarded a rating grade at the end of the evaluation. This enables investors to identify which quality level the assessed fund has been assigned to. As well as analysing key indicators, rigorous, traditional rating criteria for qualitative fund analysis are also applied, such as the track record of fund managers or the cost structure and performance of all of an investment company’s funds.

  • Fund ratings are produced by ratings agencies such as Morningstar, Feri Trust, Standard & Poor’s, Moody’s and Lipper. In the Swiss market funds are generally rated by Morningstar or Lipper.

    The agencies bear great responsibility with their ratings and therefore attempt to take account of as many factors as possible in their evaluations. Rather than evaluating performance, fund ratings instead take account of other criteria, such as the risk entered into.

  • To produce a fund rating, fund management is assessed based on experience, ability and investment style. The creation of comparison groups is important: to make a statement about a fund’s relative quality, the same, or at least similar, funds must be compared.

    The result is indicated by “grades” or stars. This enables investors to recognize which quality level the evaluated fund has been assigned to within its comparison group. PostFinance funds are also regularly assessed and rated by independent bodies. Its funds achieved an average of four out of five stars in the latest Morningstar rating.

  • The above-mentioned rating agencies not only rate individual funds, but also evaluate asset managers for all investment classes. This helps assess the investment capabilities of the entire company. Awards rather than ratings are given here. PostFinance received the award for mixed assets (equities and bonds) from Lipper, for example. This means that PostFinance achieved the best overall performance in the mixed assets category out of the 32 companies assessed. This type of award is also presented for individual products, such as the PostFinance Fonds 5 or individual third-party funds.

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