FirmPlus and FFTK Comparison

Key Differences in Active Fund Scoring between FirmPlus and Toolkit

CRITERIA

• Toolkit supports more than a 100 additional data points that were not supported in FirmPlus including 10yr and 15yr timeframes.
• The same criteria and threshold can be utilized in Toolkit that existed in FirmPlus with the following exceptions (please note, these are nuanced scenarios with limited to no usage in FirmPlus):
  • While Toolkit supports many Information Ratio and Up/Down Capture ratio data points, it does not currently support these metrics measured against the category (peer group) index. 
    • • NOTE: Toolkit will provide both as of 6.30.2025 reporting across 1,3,5,10,15yr timeframes.
  • While Toolkit supports Longest Manager Tenure in Toolkit, it does not support these nuanced variations:
    • • Longest Tenured Manager vs. peers (MGR PEER) > 50th percentile
      • Average Manager Tenure (MGR AVG)
  • While Toolkit does support a Style screen (which compares the Mstar Style Box to the Mstar Category) and many R-Squared data points and time frames, it does not support the following nuanced style calculation:
    • • Style Consistency < 29
  • While Toolkit does support many Sharpe ratio data points and time frames, it does not support this nuanced variation:
    • • 10yr Sharpe Ratio vs Benchmark > 0
  • While Toolkit does support many alpha data points and time frames, it does not support this nuanced variation:
    • • 10 year Alpha (10 YR ALPHA) > 0
  • While Toolkit does support the prospectus net expense ratio, it does not support the following:
    • • Gross Expense Ratio Rank
      • Broad Investment Expense Rank 
  • While Toolkit does support Turnover rank, it does not support using the actual turnover rate <100.
  • Average Credit Quality >=BBB
  • 5 year Risk / Return (5 YR STDDEV < benchmark OR 5 YR Return > benchmark)

PERCENTILE RANK

• When using a percentile rank data element in the score, it’s possible that the rank shown in FirmPlus scores slightly above or below the rank shown in Toolkit. This is due to minimal differences in the peer group composition and rounding rules across platforms. This typically only results in a 1 or 2 point difference in rank which would not impact the scoring unless it happens to fall right at the set threshold (i.e. 50). See example below:

Key Differences in Passive Fund Scoring between FirmPlus and Toolkit

• Toolkit supports more than a 100 additional data points that were not supported in FirmPlus including 10yr and 15yr timeframes.
• The same criteria and threshold can be utilized in Toolkit that existed in FirmPlus with the following exceptions:
  • Tracking Error: Toolkit allows for screening on the actual tracking error less than a certain threshold (ex.  TE < 1).
    • •  Toolkit does not support the ability to set the threshold based on the peer group ranking in the top 50%
  • In FirmPlus, the peer group ranking for passive scoring was determined by comparing the fund value only against other funds in that peer group (also only passive). 
    • • In a 3yr return for example, FirmPlus methodology could result in a fund having a different peer group ranking depending on if separate passive scoring is enabled or not. 
      • In Toolkit, all percentile ranks for a fund are calculated against a combined peer group of active and passive funds.

Key Differences in Target Date Fund Scoring between FirmPlus and Toolkit

• The same criteria is supported in Toolkit that existed in FirmPlus
  • • Example: Sharpe Ratio (5yr) % rank, Maximum Drawdown (5yr), Sortino ratio (5yr), Prospectus Net Expense Ratio % rank, etc.
• The same weights to the criteria are supported in Toolkit that existed in FirmPlus
• Toolkit supports more than a 100 additional data points that were not supported in FirmPlus including 10yr and 15yr timeframes.

Difference #1: Scoring Methodology  

FIRMPLUS	TOOLKIT
Target Dates Funds in FirmPlus have no explicit threshold (ex: users are not defining “5-year Sharpe > median” as a criterion)	Toolkit for Target Date Funds functions just like the Passive and Active funds. Users must set a discrete threshold (i.e. if Sharpe > median, it will receive 30, if it’s < median, it will receive 0)
FirmPlus takes the weighted peer ranking and re-orients that calculation on a 100-point scale. In FirmPlus example for Sharpe Ratio above, a fund could get a max of 30 points, but depending on its rank it could be assigned any number between 0-30; example: if Sharpe is in top percentile, 30 points would be assigned, if 10th percentile 25 points, and if 80th percentile, the fund would still get some points assigned.	In toolkit, for Sharpe ratio example above, you can only get 30 or zero points – it is all or nothing.

SCORECARD

We are launching the “Scorecard” by June 2025 that will provide deeper insights into the scores, like FirmPlus views. Below is an example of same criteria used, but on a Target Date fund. You will see that although all funds passed in both systems, the scores are different. Please note that depending on a scenario, a TDF that fails in FirmPlus could pass in Toolkit, and vice versa.

FirmPlus

Toolkit

Difference #2: Target Date Fund Series Weighting

• Series weighting is not currently supported in Toolkit, and each vintage is evaluated separately.
• The ability to group at a series level and weight by series (aka vintage or target date year) is on the Toolkit roadmap for late 2025.