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 )