TheInvestment CredibilityIndex
An independent rating of how well the asset management sector values its human capital and creates total stakeholder value — built on 32 factors, across 24 asset managers.
Why we built the Index
Moore Squared Communications and The Maturity Institute understand the emphasis asset managers put on financial metrics. But a relentless focus on the bottom line fails to account for the impact on the humans at the heart of the business.
We have created The Investment Credibility Index to assess the effectiveness of culture and human systems within asset managers. This show us how well a firm can create total stakeholder value.
Creating value
It is people who make investment decisions, communicate with clients, manage risk, respond to changing markets and deliver investment outcomes. A fund manager's ability to create sustained value ultimately arises from the strength of its human system.
Beyond the bottom line
Total stakeholder value moves beyond shareholder value by providing this assessment of how well a company manages its human capital – is this something to be sacrificed to protect the bottom line or is it vital contributor to long-term financial health?
What asset owners need from their partners
We’re moving from the consultant buy-list driving asset allocation decisions to pensions schemes wanting to build long-term relationships with organisations who manage their human capital well.
How does the Index work
How The Investment Credibility Index works
The Index analyses how well the asset management sector values its human capital and creates total stakeholder value.
We mapped the 32 different characteristics developed by The Maturity Institute, using the Omindex methodology, across to Moore Squared Communications’ four Cs – clarity, culture, communications and consistency.
We then assess these 32 different characteristics using by gathering information from around 40 to 50 publicly available sources. These include company reports, websites, media, regulatory and other third-party information.
These 32 factors then provide an overall rating for each company as well as a score for each of the four Cs – clarity, culture, communications and consistency
We publish the index and notify each company of its own rating. Each asset manager is encourage to use the information to improve itself and lift the way the sector manages human capital.
The four characteristics of a credible manager
How we built the Index
It isn't possible to cover the more than 5,000 asset managers operating in Europe. Instead we chose a representative sample of 24 asset managers.
After two decades working with the entire institutional investment chain, Moore Squared has identified four different asset manager business models. We built the Index with six companies representing each — giving a high-level insight into how each model affects an organisation's ability to build total stakeholder value.
Mega Manager
These are the largest asset managers with assets under management in the trillions.
Merged Middle
These managers build their size by merging and acquiring asset managers.
Multi Acquirer
Multi Acquirers buy asset managers but allow them to keep their brand and identity.
Marked Clarity
Managers with Marked Clarity focus on what they do well. This might be an asset class specialisation or a focus on sustainable investment.
Methodology
We created The Investment Credibility Index to measure creation through a human lens. The ratings are designed to sit alongside financial metrics.
They measure the health and long-term value-creating capability of a firm by looking at its human capital and stakeholder relationships. The framework tests and scores 32 factors that causally connect people to value — things like purpose, decision-making, learning and innovation.
Where the methodology comes from
Conceived with S&P and in place for 10 years.
Academically with Cambridge Judge Business School, and in practice with fund and equity research teams.
The Maturity Institute's first index, funded by Hermes. A one-off, but it gained good traction.
A live index for the legal sector, now grown to over 50 law firms.
Ratings summary
The top five asset managers in the newly launched Investment Credibility Index are adaptable, have strong business models and are authentic. In contrast, the bottom five lack accountability, a total quality system and do not realise human potential.
All companies on our index will benefit form improving the way they manage their human systems and their stakeholder value. A higher score will drive long-term growth as they will have closer alignment with their target clients.
Why you should be on the Index
A rating on The Investment Credibility Index shows how well an asset manager manages its human capital.
It is people who make investment decisions, communicate with clients, manage risk, respond to changing markets and deliver investment outcomes. A fund manager's ability to create sustained value ultimately arises from the strength of its human system.
Independent assessment
Moore Squared Communications and The Maturity Institute are not asset managers, investment consultants or asset owners. We use publicly available documents to produce our ratings.
Benchmark against your peers
The index lets you see how you score against your competitors. It can provide you with useful information to see what you need to improve to win more business.
A route to improvement
It can be difficult to pin down how to improve your human capital and stakeholder value. Our ratings give you a clear picture of what’s going well and what’s going badly.
Why have the kitemark
If you become you a constituent of The Investment Credibility Index, you can qualify for a kitemark. This is an easy way to demonstrate how well you are managing your human capital and total stakeholder value. It can be used to build trust with asset owners. If you want to know us more about obtaining a kitemark, please contact us.
Request the Index
The full Investment Credibility Index report sets out the ratings, the four credibility characteristics and what they mean for asset owners and managers. Tell us where to send it and the team will be in touch.
