Frequently Asked Questions

How is the Globe 5 year rating calculated?

Globe 5 year rating - a rating based on a system which separates funds into 5 broad asset classes: Canadian equity, international equity, income, balanced, and money market. This risk/reward rating is based on the total performance of each fund over the past 5 years using five 12-month periods. In order to highlight recent performance, extra weight is given to more recent years. The top 10% in the asset class receive an A+ rating; the next 15% receive an A; the next 25% receive a B; the next 25% receive a C; and the bottom 25% receive a D. If there is not 5 years of data available for a fund, the fund is not rated.

We assign weights to the funds by using the sum-of-years-digits method - that is, the return for the most recent year gets a 5/15 weight, the prior year; 4/15 and so on down to 5 years ago where the weight is 1/15.

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