The Minerva Ratings User Guide

The system analyses a fund's performance within its sector over the last five years and produces a Minerva Rating between 1 and 10.

  • 1.0 demonstrates consistent out-performance over the rest of the sector in the past five years.
  • 10.0 indicates a fund's continued under performance compared to the rest of its sector.

The Minerva Ratings appear in the Minerva Report - click here for details.

An example of the Minerva Rating format

MR MAY Name 6mth 12mth
2.40 22.77 Friends Prov European Gth 6.00 5.00

Column Key:

Column 1: MR

Minerva Rating:
This number will be between 1 and 10. Depending on how aggressive you wish to be in your fund selection, a simple rule of thumb is any fund that has a Rating of 1 to 4 can be considered a "buy". Ratings of between 5 and 7 are a "hold" and 8 to 10 are a "sell".  The Minerva Rating is a measure of consistency. A fund with a rating of 1 has been consistently excellent and a fund with a rating of 10 has been consistently appalling. As the figures are derived from data covering five years, the majority of funds will gravitate towards the average figure of 5.

Column 2: MAY

Minerva Annualised Yield:
This is a percentage number and gives the performance of the last three years annualised. (e.g. if the figure is 15.2, then over the last three years the total cumulative return would have been up 45.6%). This column gives a good guide of the performance. As this is over a shorter period than the Minerva Rating, it helps identify those funds that have been better over the medium term.

Column 3: Name

The name of the fund.

Column 4: 6mth

The decile performance position over 6 months. A decile is a tenth of the "population" in statistics. That is, the total number of funds is split into 10 groups. If the number shown is 2, the fund is in the second decile or second group in performance terms. If the number shown is 10 then the fund has been in the bottom decile or lowest group of performers in that period.

Column 5: 12mth

The decile performance position over 12 months.

Using the "decile" columns:

These are very useful to give you a guide on how a fund has done over the short term and you may wish to take account of this before making a decision.

Example 1

MR MAY Name 6mth 12mth
2.40 22.77 Friends Prov European Gth 6.00 5.00

At first glance this fund shows up as a "buy". But if you look at the decile positions you can see that whilst not disastrous performance is deteriorating. In the one year figures the fund was in the fifth decile and over six months it has dropped into the sixth decile (i.e. below average). You could therefore decide to use another fund rather than this one. As it happens if you had rung up the Friends Provident you would have discovered that the fund manager "Tony Zucher" who had produced the consistent track record had in fact left the company and the fund was under "new" management.

Example 2

MR MAY Name 6mth 12mth
6.00 19.89 Hill Samuel European 1.00 1.00

In this case you would have thought of the fund as a hold or if you are aggressive in your stance you may have a rating of 6 as sell. But a quick glance at the decile columns show you that in both period the fund has been in the top decile. Short term performance is definitely on the up and you could wait for a future Ratings before making any decision.

Example 3

MR MAY Name 6mth 12mth
7.20 17.01 AXA Sun Life European Gth Acc 1.00 6.00

Finally here we see a 7.2. again this may be a "sell" as far as many are concerned but again the deciles are giving you a warning. The fund looks like it has turned the corner. Over the twelve months the figure was below average but over six months it has managed top decile performance. Again you could wait till the next Ratings and see whether this performance is really turning around or was just a flash in the pan.

A quote from a reader

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