KLEIN FUND RATINGS

Klein Decisions has developed a  unique rating process for mutual funds and ETFs.  Based on a weighted factor model created using our K⁴ Fund Selection software, the primary goal of the Klein Fund Ratings (KFR) is to find investments that add value over traditional index products. Unlike other rating systems, ours relies exclusively on factors that research suggests are useful when seeking performance persistence.

 

K⁴ and the Klein Fund Ratings

Because K⁴ Fund Selection contains Klein's patented analytics, once the factors are selected and the weights set through the  trade-off process in K⁴, the funds can be ranked simultaneously on all four factors. The funds are then divided into groups and assigned ratings in five levels, 10% receiving the highest rating, 20% next highest rating, 40% next highest rating, 20% next highest rating, and 10% in the lowest.

 

 

Construction of Nine Risk Adjusted Return Indexes (RAR Actifindexes™)

After creating the model and the resulting rating system, Klein sought to extend the concepts to investable products that offered index-beating performance and lower expenses. Klein worked with Active Index Solutions™, an F-Squared Investment Company, to develop  the nine ActiFindex™ Risk Adjusted Return Indexes. These indexes are tracked on the American Stock Exchange. The indexes are currently available for separately managed accounts, and will be available in ETFs and ETNs by year end. The results of backtesting, monitoring out of sample, and the introductory products have been very positive.  For performance results, a fact sheet, and additional information on these indexes, go to http://activeindx.com/index.php. 

Klein Fund Ratings are based on past performance. Past performance is not an indicator of future performance. Investors and advisors should consider Klein Fund Ratings as only a single factor in making investment decisions. The information contained herein is not represented or warranted to be accurate, correct, complete, or timely. Klein Decisions, LLC, shall not be responsible for investment decisions, damages, or other losses resulting from use of this information.