FIDArating System

Classification, Categories, Rating and Indices. A wide, complete, specific and customized database.

FIDArating system consists of financial instruments* classification, specific categories construction, score/rating attribution and category indices calculation.

* Funds, ETF, shares, bonds, indices, certificates and covered warrants.



ESG Rating

Classification

Score/Rating

FIDA Indices



"FIDArating is a holistic classification system, whose peculiarity is the generality structure.
By sorting every financial instrument into classes with respect to the same metrics, database is particularly suitable for securities selection and portfolio breakdown."

ESG RATING  

The first Italian sustainability rating of investment management.

Methodology
ESG Rating aims to measure funds' and SICAVs' sustainability with a methodology which comprises different complementary elements.

Survey: cross evaluation of all the assets under management, considering CSR and product range

SFDR: sustainability level of single fund, in accordance with European legislation

Transparency: manager's willingness to share important information about managed instruments

Portfolio analysis: all the portfolio's components are assessed with reference to their sustainability level in order to evaluate their actual ESG traits

The rating is expressed on a scale from 1 to 5, evaluating the sustainability level in absolute terms.

CLASSIFICATION

Financial instruments are classified by their main characteristics of investment: type of asset, geographic area, sector, dimension, style, maturity, rating, kind of issuer and currency exposure. The classification follows a constant reference model which allows either cross research during the selection processes of securities or effective analysis of multi-asset portfolio's composition.

CATEGORIES

Categories are groups of homogeneous instruments. Securities whose characteristics make them comparable are disposed in the same category. A specific benchmark is set for every category in order to represent its historical performance.

Categories, classes and macro-classes
For the purpose of simplifying the system's use when managing larger subsets of securities, categories are organized into a hierarchy of classes and macro-classes.
Classes
Classes are groups of categories, which present homogeneous features in terms of their main classification criteria, typically asset, geographic area and currency exposure.
Macro-classes
In turn, macro-classes are groups of classes which correspond to the most typical general asset class structure.

RATING

Financial instruments' assessment is available for funds/SICAV and ETF.

Methodology
The rating provides the rank of securities into their own universe of comparable products.
The elements of every category, ranked in a specific order determined by a proprietary algorithm (score), are split into five percentiles as follow:
1st percentile (the best 10% of funds' population):   
2nd percentile (the next 22.5% of population):   
3rd percentile (the middle 35% of population):   
4th percentile (the second to last 22.5% of population):   
5th percentile (the worst 10% of population):   

The rating, expressed in terms of crowns from 1 to 5, is then assigned in relation to the percentile to which the subset is referred.

FIDA INDICES

The system of indices shows the performance of more than 200 FIDA categories, providing a complex and complete tool for market analysis and benchmarking.
Indices are computed on daily basis expressing categories' mean return.
FFI (FIDA Fund Index) and FEI (FIDA Etf Index) indices represent funds and Etf performances respectively.

Formally, indices are computed compounding the arithmetic mean of returns on daily basis.

\[I_t = I_0 \prod^t_{s=1} (1+i_s)\]

\(i_s\) = returns' arithmetic mean on the s-th day

View all FIDA Indices

DISTRIBUTION

Classes, categories, rating and indices are provided by FIDA into its main products and services.

Datafeed: Datafeed services may include FIDArating data either for their internal use or for financial platforms.

Platforms: FIDAworkstation and all FIDA platforms' researches and analysis are based on FIDArating categories and classification. Indices and score/rating are among the most significant tools for financial instruments' evaluation, particularly in investment management.

Analytical report: FIDA publishes statistics research on investment management market monthly (FIDArating analysis), quarterly (Observatory) and yearly (Yearbook).

FIDA RATING FOR INSURANCE BASED INVESTMENT PRODUCTS (IBIPs)

Presented at the 2023 “Salone del Risparmio” in Milan, the FIDA rating is a revolutionary innovation for the Italian and European investment insurance market.

What does the FIDA rating do?
Evaluates and compares: products are deeply evaluated , comparing each other against different criteria.
Value: it calculates the relationship between the quality of the product (variety of investments, insurance guarantees, flexibility) and the cost to the client. This concept, called 'value for money', is fundamental according to European regulations (IDD).
Provides detailed information: it collects precise data on each product, from costs to returns, including the characteristics of the underlying investments.
Simplifies choice: thanks to a clear and intuitive classification system, it allows to easily find the product best suited to needs.

Why is it important?
Transparency: the new FIDA solution, makes it easier to understand the features and costs of each insurance product.
Comparison: the tool allows people to choose the best product based on their needs and risk profile.
Alignment with European legislation: the solution meets the requirements of the Insurance Distribution Directive (IDD), which puts the consumer's interest at the centre.

Methodology
For each product FIDA collects contract information, financial information and cost information - both that of the insurance container and that of the underlying assets (external funds, ETFs, internal funds, segregated funds).
The FIDA rating makes it possible to summarise the Value of insurance products represented by the quality, variety of underlying financial products and insurance content, and to compare it with the Money (the cost for customer) represented by the sum of the costs of both the insurance container and the underlying financial products. Value for Money is the main concept of IDD.
Rating insurance products makes it possible to compare them, both as a whole and at the level of individual features.
Finally, FIDA has developed a category system that facilitates the exploration of the database by grouping by financial similarities.
The entire system is particularly effective for various purposes including the relative rating of individual products, positioning and market analysis..