The fi360 Fiduciary Score TM is an investment rating system born out of Practice 3.1 in the Prudent Practices for Investment Fiduciaries handbook series. It helps quickly identify a short list of Mutual Funds and/or ETF’s (funds) that merit further research in the selection process and also facilitates the ongoing monitoring process by highlighting funds that contain potential deficiencies.
The Score evaluates funds on nine different screens across a spectrum of quantitative data points to determine if the fund meets a minimum fiduciary standard of care. The nine screens include: regulatory oversight, track record, assets in the fund, stability of the organization, composition consistent with asset class, style consistency, expense ratio/fees relative to peers, risk-adjusted performance relative to peers, and performance relative to peers.
The Score is a flash-report on a selected mutual fund or ETF. It is a useful tool for investment decision-makers to identify and monitor funds in the exercising of their duties. It represents a suggested course of action and is not intended, nor should it be used as the sole source of information for reaching an investment decision.
