Credibility assessment methods for Non-State Pension Funds

The Expert RA rating agency assigns ratings to NSPF on the basis of credibility assessment methods, developed in cooperation with National Association of Non-State Pension Funds (NANSPF).

The rating main consumers are NSPF clients, interested in ability of a fund to realize its commitments fully and timely, in keeping with current non-state pension fund contracts and obligatory pension insurance. The rating is also of importance for managers and founders of a fund. In addition the rating performs a market function. It may be used to promote a trade mark and certain products of specific funds, and to popularize non-state pension services in general.

Fund ratings and brief conclusions on credibility assessment of each fund are published in open press.

A model of interconnected assessment of factors, related to different aspects of fund activity, is used to determine NSPF rating.

Any fund, depending on credibility level, may be put into one of three classes:
А – high credibility;
В – acceptable credibility;
С – low credibility

Each class is divided into three sub-classes, depending on a comparative level of fund credibility strictly within each class. Each sub-class looks as follows:
N++ – fund credibility above class average;
N+ – fund credibility class average;
N – fund credibility below class average
N – class credibility index

Fund credibility is analyzed in the following areas:

• Fund size,
• Fund geography,
• Fund clientele,
• Fund investment strategy,
• Fund professional and business potential

The NSPF credibility assessment scheme consists of several levels – each factor is analyzed through several indicators. The rating assessment is based on information, provided by funds themselves. The Agency guarantees confidentiality of the presented information.

The assigned rating is valid within a year. During the period funds provide the Agency with basic information on its activity. The Agency is allowed to change or cancel the assigned rating in case of revealing some new factors of dramatic influence over the rating results.