Fiduciary rating of investment management organisation
Profile
RCP & Partners is a fiduciary rating agency operating out of Geneva, Wiesbaden, London and Hong Kong. It provides fiduciary rating services of asset management organisations.

-Fiduciary rating measures the risk of investors who entrust their money to third party organisations.
-Fiduciary risk is the risk of breaching the investors' trust by failing to perform their contractual expectations. It reflects weaknesses, deficiencies and failure of systems, processes and organisation of an investment house.
-The rating evaluates the stability of a firm and its ability to sustain relative performance across time. This is done through a comprehensive due diligence of the asset management organisation, reviewing two families of risks:

a) STRUCTURAL RISK (the hardware of the business) covering overall resource allocation, risk control, compliance, administration and back-office, middle office, sales and marketing.

b) PERFORMANCE RISK (the software of the organisation) covering the whole investment management process, from research straight through trade execution, including the firm's own investment track record.

In short, RCP & Partners believe that a full attribution analysis of performance goes way beyond the investment process and should capture all the upstream factors of the organisation affecting performance.
Services offered
-Various classes of asset management houses can be rated. Index managers, traditional (long only) managers, hedge fund managers (mainly long/short and arbitrage), private equity and venture capital houses.

-Ratings can be either public or confidential, according to the need of the investment house. All ratings are set on the basis of: asset classes and geographic universes. For example, one group may be rated on equities in Europe while another will be on fixed income on a global basis.

Fiduciary rating is an annual review assessing the fiduciary risk of investors on a time horizon of 12 months. Fiduciary diligence is reviewed each year on the rating anniversary of each organisation.