Meet your compliance needs!
Fundata’s FUNDGrade® rating system assigns a grade to over 6000 investment funds.
Based on the latest thought in Modern Portfolio Theory, FUNDGrade provides a quick
and easy tool for identifying funds with a track record of superior performance.
How it works
The Fundata FUNDGrade rating system assists investors in selecting high quality
investment funds within the Canadian investment fund universe. A fund’s performance
is evaluated not only in terms of returns but also in terms of amount of risk taken
to generate these returns. FUNDGrade employs an advanced, risk-adjusted approach
to rank the performance of each investment fund.
From A (superior past performance) to E (poor past performance) our rating system
assigns a grade to each investment fund. To score an "A" or "B," a fund must not
only substantially outperform the category average but it must also surpass the benchmark
for the category.
Use FUNDGrade for:
- Comparing funds against peers
- Identifying top-performing funds
- Promoting your fund's exceptional performance in marketing materials
- Assisting in selection of high-quality funds
Highlights of Fundata FUNDGrade
- Modern Portfolio Theory is used to calculate and assign the Fundata FUNDGrade.
A fund's performance is evaluated using three ratios that measure 1) excess return
over a risk free rate per unit of total risk, 2) excess return over a risk-free
rate per unit of downside risk, and 3) excess return over a benchmark per unit of
active risk. All three measures are independently calculated and weighted equally
to create the overall score.
- The Fundata FUNDGrade rating system uses the fund classification standards that
are defined by the Canadian Investment Funds Standards Committee (CIFSC) to ensure
comparability between the investment funds.
- Historical performance is taken into consideration when assigning a FUNDGrade to
the investment fund. FUNDGrade is assigned only to funds that have more than 2
year's of history, and risk-adjusted returns are evaluated over 2-, 3-, 5-, and 10 year
periods accordingly.
For a more detailed description of the Fundata FundGrade methodology please direct
your questions to our analytics department.
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Copyright 2008 Fundata Canada Inc.