Fonmetre is an objective rating system for measuring performance of Turkish mutual funds and pension funds. The rating system is based on performance measurements from the perspective of investors. Fonmetre is not only based on periodic returns; instead it uses the notion of riskless return and Utility Theory. Fonmetre rates funds within their category such that funds with higher utility adjusted returns are rated with a higher number of stars (from 5 to 1). Fonmetre measures the return/risk compromise between investing in a fund or investing in riskless return. In order to do that; Utility Theory is used so that the excess return of a fund over riskless return is punished based on its volatility and negative excess returns

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