New ratings product to favour loyalty and experience

A new product from Fitch Ratings has the potential to increase the premium for experienced fund managers who stick with a single employer.

Fitch is launching a new 'Investment Process' product which rates a fund manager's ability to deliver its investment objectives, reports the website IPE.com.

The product will complement Fitch's existing asset manager ratings, and will cover everything from staff and organisation, to portfolio management, investment risk management and technology and operational environment.

Said Rasat, managing director of the asset management rating group at Fitch, tells eFinancialCareers the product will take into consideration the number of years' experience a fund manager has of a particular investment process, as well as his or her length of tenure at a particular organisation.

"Experience and the stability of the team will definitely be a factor," he says. "Instability in itself is not a negative as you can go from a weaker to a stronger team, but on the whole we will favour stability."