FEND Securities Expert Witness
5529 Bedford Avenue Los Angeles, CA 90056
3106493663 fendmase@ca.rr.com FEND Securities Expert Witness

 

Mason Alan Dinehart III Arbitrator - FEND Securities Expert Witness

SCORECARD

 

 

MUTUAL FUND SCORECARD

 

 NAME OF FUND:               _______________________________

TYPE OF FUND:               ________________________________

INVESTMENT PHILOSOPHY:      ___________________________

TYPES OF SECURITIES HELD:   _________________________________

                                                     _________________________________

 

 1.  Management History:

(# of years fund operating) ____

 

a.  10 or more years      (5 pts)

b.  8-9 years                  (4 pts)

c.  5-7 years                  (3 pts)

d.  3-4 years                  (2 pts)

e.  0-2 years             (1 pt )

f.  less than 1 year      (0 pts)

 

2.  Consistent Management:

(maj. of managers in place)   ______

 

a.  10 or more years      (5 pts)

b.  8-9 years                  (4 pts)

c.  6-7 years                  (3 pts)

d.  4-5 years                  (2 pts)

e.  2-3 years                  (1 pt )

f.  new to 1 year            (0 pts)

 

3.  Performance above S&P 500:

(from most recent year end) _______

 

a.  9 to 10 years        (5 pts)

b.  7 to 8 years          (4 pts)

c.  5 to 6 years          (3 pts)

 d.  3 to 4 years          (2 pts

e.  2 years               (1 pt )

f.  less than 2 years     (0 pts)

 

4.  Standard Deviation of Return:

(last five calendar years)    ____

 

a.  less than 7%           (5 pts)

b.  7% to 9.99%           (4 pts)

c.  10% to 14.99%       (3 pts)

d.  15% to 20%            (2 pts)

e.  more than 20%       (1 pt )

 

 

 

(Page 2)

 

9. Portfolio Turnover:  ______

(100% adds .70 expenses

from transaction costs - 3 yr. ave)

 

a.  15% to 24%           (5 pts)

b.  25% to 49%           (4 pts)

c.  50% to 74%           (3 pts)

d.  75% to 99%           (2 pts)

e.  100% to 149%         (1 pt )

f.  150% or more         (0 pts)

 

 

10.  Assumptions:  _______

(Analysis of risk)

 

a.  80% of normal         (5 pts)

b.  90% of normal         (4 pts)

c.  100% of normal       (3 pts)

d.  110% of normal       (2 pts)

e.  120% of normal       (1 pt )

 

This ScoreCard is intended to be used for comparison purposes only. It is subjective in nature and no warranty of absolute accuracy is expressed or implied. Future results will vary. Further, there is no assurance that current scores will be maintained. Finally, when this ScoreCard is used in conjunction with a specific mutual fund, it must be accompanied by a prospectus.

 

Revised 5-31-09

 

 

VARIABLE ANNUITY SCORECARD

 

NAME OF VARIABLE   ANNUITY____________________

NAME OF INSURANCE COMPANY__________________

NUMBER OF YEARS PRODUCT HAS BEEN AVAIL. ____

PRODUCT INCLUDES TERMINAL ILLNESS & NURSING CARE BENEFIT WITH SURR. CHGS. WAIVED ________

 

 

1. Life Insurance Company Rating  _______

(Best, Stand. & Poors, Fitch)
a.  A+                                  (5 pts)

b.  A                                    (3 pts)

c.  A-                                   (1 pt )

 

2.  Length of Surrender Period  ___

 

a.  3 years                           (5 pts)

b.  4 years                           (4 pts)

c.  5 years                           (3 pts)

d.  6 years                           (2 pts)

e.  7 years                           (1 pt  )

 

3.  Mortality/ Expense Charge %___

 

a. 110% - 119%                   (5 pts)

b. 120% - 129%                   (4 pts)

c. 130% - 139%                   (3 pts)

d. 140% - 149%                   (2 pts)

e. 150% or more                  (1 pt  )

 

4.  Total Exp. Chg. W/O Riders  ___

 

a.  2.00% - 2.09%                (5 pts)

b.  2.10% - 2.19%                (4 pts)

c.  2.20% - 2.29%                (3 pts)

d.  2.30% - 2.39%                (2 pts)

e.  2.40% or more                (1 pt  )

 

 

PAGE 2

 

8.  Cost of GMIB/GMWB Riders___

 

a.  .60% - .69%                   (5 pts)

b.  .70% - .79%                   (4 pts)

c.  .80% - .89%                   (3 pts)

d.  .90% - .99%                   (2 pts)

e.1.00% or more                 (1 pt  )

 

9.     Timing Trigger for Annuitiz.

or GMIB/GMWB Riders      ____

 

a.  After 1 year only             (5 pts)

b.  2 – 3 years                     (4 pts)

c.  4 – 5 years                     (3 pts)

d.  6 – 7 years                     (2 pts)

e.  8 years or more              (1 pt  )

 

10.   Termination of V/A Contract___

 a.  Contract cannot terminate

if acct. goes to zero or from

excess withdrawals           (5 pts)

b.     Contract can terminate

if acct. goes to zero or from

excess withdrawals but w/

written notif. from Ins. Co.(3 pts)

c.     Contract can terminate

if acct. goes to zero or from

excess withdrawals w/o

Ins. Co. notification           (1 pt)

 

Total Points Achieved Out of 50 _______

 

* Score 5 points if V/A is not placed in an IRA w full tax deferral

 

Note: A score below 35 or 70% is below due diligence consideration.

 

This V/A ScoreCard is intended for Broker Dealer Use Only.

A Prospectus must always be given along with the recommendation of a Variable Annuity to a customer.

6-17-09 - Prepared by Mason A. Dinehart III, RFC

 

 

5.  Last Reported Expense Ratop:

(Mgmt. fees, expenses & administraton) _____

 

a.  less than .8%     (5 pts)

b.  .8% to .9%        (4 pts)

c.  .9% to 1.0%       (3 pts)

d.  1.0% to 1.1%      (2 pts)

e.  1.1% to 1.2%      (1 pt )

f.  1.2% plus         (0 pts)

 

6.  Fund Lends Out Securities _____

 

a.  reinvests safely & rebates all to inv       (5 pts)

b.  reinvests safely & keeps 50% plus        (3 pts)

c.  reinvests w risk & pays advisors 100%  (0 pts)

 

 

7.  Beta Rating:  ______

(Last 5 calendar yrs.)

 

a.  below .68         (5 pts)

b.  .70 to .79         (4 pts)

c.  .80 to .89         (3 pts)

d.  .90 to 1.0         (2 pts)

e.  1.01 to 1.11     (1 pt )

f.  1.12 to 1.22      (0 pts)

 

8.  Sharpe Ratio: *** _____

(last 5 calendar yrs.)

 

a. 1.00 or more     (5 pts)

b.  .90 to .99         (4 pts)

c.  .80 to .89         (3 pts)

d.  .70 to .79         (2 pts)

e.  .60 to .69         (1 pt )

f.  less than .60     (0 pts)

 

 

 

 

 

 

 

***  Created by William Sharpe, Ph.D., Stanford University. Nobel Memorial Prize winner in conomic Science.

 

The Sharpe Ratio is a measure of risk and return trade off.

 

Note:  This form is applicable to total returns and financial  statistics ending December 31, _______

 

Total Points Achieved ___________


Total Points Possible: 50

(35 points is minimum for due diligence consideration)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.  Death Benefit Guar.___

 

a.  Orig. inv’t less withdrawals, plus annual % inc.     (5 pts)

b.  Orig. inv’t less withdrawals, auto. stepped-up       (3 pts)

c.  Orig. inv’t less withdrawals, w/o step-up/ann. Inc. (1 pt )

 

 6.  Remaining D/B Guar. Calc. After Market Decline and Withdrawals        ___

 

a. Dollar-For-Dollar                             (5pts)

b. Dollar for Dollar, conv. to Pro-Rata  (3 pts)

c.  Pro-Rata Calc.                                (1 pt  )

 

7.  Placing the V/A into an  IRA or Qual. Plan *   ____

 a.  Decision based upon cost/qual.- Death Ben  (5 pts)

b.  Decision based upon GMIB or GMWB            (3 pts)

c. No clear reason to re-place loss of tax def.     (1 pt )

 

 

 

 

 

FEND - Securities Expert Witness

Telephone: (310)641-0377

FAX: (310)649-3663

Email: fendmase@ca.rr.com or tremase@fend.com

 

© 2018 Fend Securities Expert Witness