RiskMetrics launches mutual fund evaluation service

RiskMetrics, the US-based risk management analytics provider, has released an equity mutual fund evaluation service that focuses on assigning performance measurements based on the risk of a mutual fund manager. The service, called 'Best and Worst' fund evaluations, is freely available to investors and other market participants.

The quantitative approach identifies those funds that have provided the greatest risk-adjusted performance, while maintaining the most stable level of risk over the last five years.

The evaluations are assigned within four style categories: conservative, balanced, growth and aggressive. These categories are determined by the risk profiles of each fund. RiskMetrics launched the lists simultaneously in the United Kingdom and the United States.

"This approach allows us to separate fund managers who govern risk from those who are erratic," said Ethan Berman, RiskMetrics' chief excutive.