Mutual Fund Selection Process

 

Step 1: Rank funds based on return and manager tenure 

> Rank funds based on 5-year annualized total returns

> Re-rank the top 30 funds based on 3-year annualized total returns

> Eliminate funds where the manager tenure is less than 2.5 years

> Select the top 10 funds to move to next step

Step 2: Rank funds based on performance 

> Using calendar-year returns for the last 5 years rank each fund’s annual return relative to the other 9 funds and assign a score of 1-10 with 1 being highest return.

> Total the ranking scores that each fund received 

> Rank the funds based on their total ranking score and assign a value of 1-10 with 1 being for the lowest ranking score.

> Output – Top 10 Funds ranked by consistency of relative outperformance over 5 years

Step 3: Review detailed information on the fund company’s investment philosophy and process

> Evaluate management’s quarterly commentaries to understand how the fund’s portfolio is positioned.

> Compare the fund’s top holdings and segment weightings to see if it complements our own style and there is        appropriate diversification.

> Review third-party analysts’ reports/opinions.

> Eliminate Funds that we believe will have a tendency to “style” drift  or are not diversified to a level we are comfortable with

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.

This is not an official website or publication of iA Private Wealth and the information and opinions contained herein do not necessarily reflect the opinion of iA Private Wealth. The particulars contained on this website were obtained from various sources which are believed to be reliable, but no representation or warranty, express or implied, is made by iA Private Wealth, its affiliates, employees, agents or any other person as to its accuracy, completeness or correctness. Furthermore, this website is provided for information purposes only and is not construed as an offer or solicitation for the sale or purchase of securities. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces where they are registered.