Scope publishes final methodology for the assessment of infrastructure funds
The rating agency Scope has finalised and published its rating methodology for the assessment of investment funds in the form of broadly diversified infrastructure funds after the commentary phase.
The methodology covers all products, irrespective of the investor target group or the respective regulatory characteristics, and thus expands Scope's existing rating spectrum. The rating makes a statement about the risk-return profile of a fund, taking into account the investment portfolio and its investment strategy, and thus establishes the ordinal comparability of different funds with regard to these parameters.
The analysis consists of the following elements:
Portfolio Analysis – Based on a quantitative analysis, the portfolio analysis comprises in a first step the determination of the risk of the underlying assets. Here, data at the property and contract level are comprehensively examined for specific risks. On the one hand, these are risks resulting from the structural and location-related parameters, and on the other hand, the contractual and income-related parameters of the assets are taken into account. In a further step, risk factors from the areas of ESG and financial structure are assessed. The results of the three areas together produce the so-called portfolio score of each fund.
Asset Management and Fund Management Analysis – In the asset and fund management analysis, the management performance is assessed both at the level of the managing company and at the level of the individual fund. The so-called management score forms the result of this evaluation area.