The number of international funds registered in Spain is very high, so to reach the group of international funds we select requires a robust methodology that takes into consideration various aspects:
- Quantitative selection criteria: our internal quantitative model identifies the most consistent funds in each category based on their historical returns and risk data.
- Qualitative selection criteria: we focus on those funds that stand out for their long-term consistency to understand how funds obtain their results, how much experience the management teams have, how they make their investment decisions and what risk controls they have in place.
- Due Diligence: we have a comprehensive process to make sure that both the management company and the funds have a robust model to control operational risks, beyond those of the market and asset, and thus deserve our confidence. At Quality Funds, we analyze the global risk, which is why all the agents involved (management, custodian, depository, and fund) must pass our Due Diligence. It is important for the fund manager to have proper risk management guidelines for the positions taken by its analysts. Also relevant are the functions of the other entities we study, such as the Custody bank (which is where the financial assets purchased by a manager are deposited) and the Administrator (responsible for calculating the net asset value).