Framework Overview

The Vessel Multi-Factor Model

At the heart of our research process is a structured multi-factor scoring model that evaluates each financial instrument across five analytical dimensions. This model was developed in-house by our research leadership team and is reviewed annually against its predictive performance and relevance to current market conditions.

The model is applied consistently across asset classes, with class-specific adaptations that account for the distinct characteristics of equities, bonds, ETFs, commodities, currencies and digital assets. All inputs are sourced from licensed data providers, regulatory filings and proprietary research.

Five Analytical Dimensions

01

Fundamental Value Assessment

For equities: earnings quality, valuation multiples (P/E, EV/EBITDA, P/B), revenue growth trajectory, free cash flow generation and balance sheet strength. For bonds: credit quality, issuer financial health, covenants and default probability. Weight: 30%

Weight in model30%
02

Risk Profile Evaluation

Volatility analysis (historical and implied), maximum drawdown, Value at Risk (VaR), beta relative to benchmark, tail risk indicators and concentration risk. For bonds: duration, convexity and credit spread volatility. Weight: 25%

Weight in model25%
03

Liquidity Analysis

Average daily trading volume, bid-ask spread analysis, market depth, days-to-liquidate calculations and exchange/venue accessibility for Danish and European investors. ETF-specific: premium/discount to NAV and creation/redemption efficiency. Weight: 20%

Weight in model20%
04

Macroeconomic Alignment

Assessment of how instrument fundamentals interact with prevailing and anticipated macroeconomic conditions: monetary policy cycle, interest rate environment, inflation trajectory, economic growth outlook and geopolitical risk factors. Weight: 15%

Weight in model15%
05

ESG & Governance Factors

Environmental impact metrics, social responsibility indicators, corporate governance quality (board structure, shareholder rights, remuneration policy) and regulatory compliance track record. ESG data sourced from third-party providers including MSCI ESG Research and Sustainalytics. Weight: 10%

Weight in model10%

Vessel Rating Scale

Model scores are converted into one of five standardised assessment categories. These categories reflect the instrument's overall attractiveness on a risk-adjusted basis, relative to alternatives in its peer group and asset class.

Overweight
Score 75–100
Accumulate
Score 60–74
Neutral
Score 40–59
Reduce
Score 25–39
Underweight
Score 0–24
Important: Vessel ratings reflect our independent analytical assessment of an instrument. They are not investment advice, recommendations to buy or sell, or financial guidance. Ratings are subject to change as new data becomes available. Past performance and our previous assessments do not guarantee future results.

Data Sources & Information Standards

We source data from a combination of licensed market data providers, regulatory databases and public company disclosures. Our primary data sources include:

  • Refinitiv (LSEG) Eikon for financial market data, pricing and fundamental data
  • Bloomberg financial data and analytics platform
  • Nasdaq Copenhagen and Euronext official exchange data
  • Danmarks Nationalbank for Danish macroeconomic and monetary data
  • European Central Bank Statistical Data Warehouse
  • Company annual reports, interim financial statements and regulatory filings
  • MSCI ESG Research for environmental, social and governance data
  • Sustainalytics ESG Risk Ratings

Review & Publication Process

1
Data Collection

Structured data extraction from licensed sources, cross-referenced against at least two independent providers.

2
Model Scoring

Multi-factor model applied by the lead analyst, with automated flags for outlier scores requiring peer validation.

3
Peer Review

Every report is reviewed by a second senior analyst before publication. ESG-sensitive reports also reviewed by compliance.