(March 15 – 12:30 ET) – Fundata Canada today launched its FUNDGrade mutual fund rating system.
The ratings are based upon independent measurements of risk, return, and consistency.
“The FUNDGrade rating system is a quantitative and objective measure of a fund’s risk, return and consistency relative to its peers and suitable comparative benchmarks,” says Janny Vincent, chief operating officer of Fundata Canada.
All three measurement factors are independently calculated and weighted equally to create the overall score. Fundata says this differs from other rating systems, which combine factors to create scores.
The rating system ranks mutual funds from A (superior past performance) to E (poor past performance. It grades funds that are at least two years old within their fund categories
Each month funds are scored as follows:
Funds are ranked against both their peers in their fund category as well as against category benchmarks. The benchmark for each fund group is that of the Investment Funds Standard Committee To score an “A” grade, a fund must not only substantially outperform the category average — it must also beat the benchmark for the category.
“The ratings will be available free to users on www.Fundlibrary.com and many other Web sites. The ratings will be included in the National Post’s Monthly Mutual Fund Report, The Toronto Star’s comprehensive monthly mutual fund section, the Vancouver Sun and Province, Calgary Herald, Edmonton Journal, Montreal Gazette and many other papers across the country” says James Halliday, general manager of Fundata Canada Inc.