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Fi360 Boss Explains Firm's Prudent Investment Process

By Crucial Clips     December 20, 2017
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ, Oct. 11, 2017 

RITA RAAGAS DE RAMOS, SPECIAL PROJECTS MANAGER, FAIQ: Hello, I'm Rita Raagas De Ramos from Financial Advisor IQ. And with me today is Matt Wolniewicz, president of Fi360. Some say that advisors should not give in to the "cheaper is better" mentality when it comes to investments, and that they should really make the effort to explain to an investor why one product is better than the other, regardless of costs. But how do you think they can achieve this given that litigation might be a problem in the future? And how can they achieve it if they're always worried about that?

MATT WOLNIEWICZ, PRESIDENT, FI360: Our belief at Fi360 is that it's all about having a prudent investment process that you can repeat over all of your clients. And the end result is to make sure that the investor can achieve their desired outcome. So by using the Fi360 score across all categories and investment types, you have one consistent basis to evaluate investments. At the end of the day, price is only one consideration when it comes to reaching the investor's end goal.

RITA RAAGAS DE RAMOS: Can you explain a little bit more about how the score works?

MATT WOLNIEWICZ: Sure. At Fi360 we have the Fi360 score where we ultimately rate all strategies that are within a peer group. The way that the score works is zero is a perfect score. It's the most desirable score. 100 is the least desirable score. Within that, quartiles. The top quartile is green, second quartile is yellow. The third and fourth quartile are red.

The benefit of using a rating system is, not only is it easy to explain to high net worth individuals and those who may be on the planned sponsor committee, it also gives the advisor the ability to, on a peer group basis, rank the investments against each other.

RITA RAAGAS DE RAMOS: Thank you, Matt.

MATT WOLNIEWICZ: Thank you, Rita.