Fi360 Toolkit Review

A prominent feature of Fi360 For Advisors is its usage and application of the scoring system for monitoring and selecting of funds and investments called the Fi360 Fiduciary Score. This scoring system which is used to calculate score for open end mutual funds, ETFs or exchange-traded-funds, and Group Retirement Plan Annuities or GRPAs works by allowing users to analyze each fund or investment within a peer group based on the criteria and thresholds set in the Fi360 Fiduciary System. These criteria and thresholds include regulatory oversight, minimum track record, stability of the organization, assets in the investment, composition consistent with the asset class, style consistency, expense ratios  or fees relative to peers, risk adjusted performance relative to peers, and performance relative to peers.

To better understand these criteria and thresholds Fi360 has provided some basic details on them. Under the regulatory oversight, the scoring system doesn’t calculate investments that are unregistered,  and the investments should be having at least three years of history in order for them to be calculated and scored for the minimum track record criteria. For stability scoring, it requires at least two years of placement for  the same portfolio management team.

Meanwhile, the assets being managed in the investment should be at  least $75 million across all share classes. This is the requirement for the assets in the investment. Composition consistent with the  asset class means that 80% of the underlying securities of the investment with the broad asset class while style consistency requires a high  correlation of the product to the asset class investment option. For expense ratios, the product’s fees should not appear in the bottom quartile of the peer group. Sharpe ratio and alpha are used to calculate the product’s  risk-adjusted performance relative to peers and should be above the median manager’s risk-adjusted performance of the peer group. The last criteria is performance relative to peers and the score here is calculated based on the product’s performance which should be above the peer’s group median manager return for for 1-, 3-, and 5-year cumulative

Then, each fund and investment is  scored against  each of the criterion  and a raw score is calculated after all the scores from the criteria are combined to be translated to a percentile ranking for the given investment within a peer group. This feature of Fi360 For Advisors is very useful since the  criteria can be applied not only for current investments but also use to win new clients by putting their funds into a watch list or by comparing their current investment portfolio to a proposed portfolio that has been evaluated using Fi360 Scoring System.

Another feature of Fi360 For Advisors is that its fund and investment capability allows users to create custom criteria and they can add 15 criteria points. Furthermore, they can manage their funds both in global and micro-level scale. The software also generates visual reports showing an easy to understand illustration that represents their investments, funds, assets in the investments  and how they are doing. Termed as the Fi360 Scatter Plot reporting, this type of reporting enables users to show their clients investment reports in a simplified manner. Furthermore, it also promotes an opportunity to present the positive points and advantages of proposed investment portfolios.