The fi360 Fiduciary Score is a quantitative evaluation of how well a fund meets a minimum set of due diligence criteria. The scoring system weights a fund’s standing in relation to thresholds in eight areas defined by fi360 that reflect prudent fiduciary management: 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. Funds with less than a three-year history are not scored.
An fi360 Fiduciary Score of zero is most favorable. It represents a fund that meets or exceeds all of fi360’s recommended due diligence thresholds. A score of 100 is least favorable. For example, a small-cap value fund with an fi360 Fiduciary Score of 37 would place in the 37th percentile of its peers.
For funds with the requisite history, the fi360 Fiduciary Score (quarter) represents the evaluation as of the calendar quarter, such as March 31, 2008. The fi360 Fiduciary Score (average) represents the rolling arithmetic average of individual quarterly evaluations, building into a three-year average.
The fi360 Fiduciary Score provides a snapshot of the fiduciary strength of a selected mutual fund. It is not intended, nor should it be used, as the sole source of information for reaching an investment decision. To read the full fi360 Fiduciary Score methodology visit http://www.fi360.com/fa/help/pdfs/methodology.pdf.
