Investment Advice

Investment Evaluation Tools and Process Designed to Enhance Outcomes

Through our membership with RPAG we have access to their proprietary fund ranking system to enhance outcomes, manage risks and reduce fiduciary exposure.  Our approach consists of two equally important parts, i.e. sophisticated, quantitative analytics and in-depth, qualitative due diligence.

  • Quantitative Analytic. Funds are scored using a proprietary 10-point pass/fail scoring process that is also easy to understand. A funds’ overall score reflects a manager’s skill within a particular asset class.  Funds that score 7 points or more are considered acceptable.  Funds that score 6 points or below are considered “watch list” or “replace” based on further analysis and discussion.
  • Qualitative Due Diligence. RPAG’s Investment Research team conducts daily meetings with portfolio managers to monitor portfolio philosophy, processes and personnel. They leverage their size to gain access to key investment personnel that other consulting firms cannot.

Sound fiduciary investment review processes should be based on apple-to-apple performance comparisons.  This is not always the case, however. Prior to calculating any performance-related statics, e.g., alpha, beta, up & down capture ratios, information ratio or peer group rankings, our scoring process identifies a custom style benchmark index and creates custom peer group universes for both actively managed and passively managed funds.  Custom style benchmark comparisons allow us to isolate a fund’s market-related and style-related investment returns to that any unexplained variance – i.e., over- or under-performance-can be attributed to manager skill.  Separate, custom peer groups for both actively and passively managed funds further refines the accuracy of our scoring methodology.  Finally, return series, i.e., 36-month rolling intervals over the past five years, rather than fixed time intervals, e.g., one-, three- and five-year returns, are utilized to provide better measure of central tendency (consistency) and improve our ability to identify performance trends.

Working in an Investment Advisor Representative capacity, we can act as a 3(21) co-fiduciary to the retirement plan with respect to the selection and monitoring of investments.  You’ll receive an investment policy statement, manager scorecard, quarterly market summaries and transition assistance whenever you need to terminate or hire a fund manager.



*Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC.  Investment advisory services offered through Kestra Advisory  Services, LLC (Kestra AS), an affilate of Kestra IS.   Kestra IS and Kestra AS are not affiliated with Mel Foster Insurance Company or any entity referenced herein.  This site is published for residents of the United States only. Registered Representatives of Kestra Investment Services, LLC and Investment Advisor Representatives of Kestra Advisory Services, LLC, may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. Neither Kestra IS or Kestra AS provides legal or tax advice. For additional information, please contact our Compliance department at 844-5-KESTRA (844-553-7872).

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