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Greetings to all members of the financial professional community

We the members of Wall Street Insight would like to open the door to hear any questions, comments, concerns, or suggestions members of the financial community may have with respect to the Mutual Fund Constitution initiative being spearheaded by our organization.  

Please know we are looking to establish more trust and overall better relationships between members of the general public and members of the financial community. In light of today's state of affairs we at Wall Street Insight feel this is a very worthwhile undertaking. 

We hope any members of the financial community that read this blog or get introduced to our organization see the need in addressing the relationship issues that plague our financial environment and society as a whole.  

Please feel free to get involved socially on this blog and any other areas of Wall Street Insight's web site. Your presence is welcome and our company management will carefully consider your input.  Our non-professional members will not disturb any of your activity on this Feed Back Blog. You can openly interact among your selves with out any of our members interfering.  

We will also see to it that our non professional members are courteous and respectable to all members of the financial professional community that take time to participate in this Feed Back Blog.

We really would like our Mutual Fund Constitution Initiative to be well received. For this reason we will make earnest efforts to be sensitive to all parties involved, members of the public and financial professionals alike.

We will also be posting periodic conference call schedules on this blog as well. This will be for financial professionals who wish to verbally express opinions and feedback or to interact directly with our company management.

Non-professional members will not be allowed to participate in these conference calls. These calls will be strictly for members of the financial professional community alone.

Below you will find a complete copy of our Mutual Fund Constitution, a Glossary of Terms, and a break down of the Simplified Mutual Fund scoring system  for you to review. 

We at Wall Street Insight would really like to hear from you.

Thank You and God Bless 

 

 

                                     Simplified Mutual Fund Scoring System

Baron Funds

The following is a breakdown of the numerical scoring system that will be used to determine when a mutual fund is in distress. 

The Clinic Administrator first calculates the mutual fund’s Performance Measure. This is done by taking a straight average of a particular mutual fund’s 5 year, 3 year, 1 year, and 6 month peer group percentile ranking. 

A Performance measure of 1 is the best possible score. A performance measure of 99 is the worst possible score. 

Mutual Funds with Performance Measures from 1-40 are not considered to be in distress. 

Mutual Funds with Performance Measures ranging from 41- 55 will be eligible to be issued a Citation and will be placed on a Watch List. 

Any mutual fund that has a Performance Measure over 55 is considered to be in distress and in great need of rehabilitative assistance 

 

Mutual Fund Constitution

 

We the members of Wall Street Insight declare on this day a new order in the mutual fund industry. 

This new order is one the members of Wall Street Insight will defend, enforce, promote, and live by. This document is to serve as a new constitution for the mutual fund investor. 

Let it be known to all financial professionals and consumers alike, if there are any bi-laws contained in this Mutual Fund Constitution that they are in disagreement with or feel is unfair, inequitable, or unethical they are free to join the educational social network at www.wallstreetinsight.net. It is there they can debate in the open forums their various perspectives, opinions, and ideologies. 

The following articles will outline the new order of the Wall Street Insight Mutual Fund Constitution.

 

Article 1.

Any member of the financial community that is in disagreement with this constitution in any way has the right to debate the perspectives in the open forum.

 

Let it be further known that the membership of Wall Street Insight will only recognize those opinions about potential changes to this Mutual Fund Constitution that are expressed in the open forum.  Wall Street Insight will not recognize opinions about constitutional changes that are not expressed in the open forum. 

 

Article 2.

Any members of the financial community that fail to acknowledge in any way (written or verbal) that there are problems in the mutual fund industry that are in great need of attention will be considered a negative influence in the industry and a contributor to the problems that have plagued the customer for years.

 

Let it be further known those members of the financial community that fail to acknowledge the existence of problems in the mutual fund industry will also be considered the customer’s adversary. Those financial professionals will not receive any good will from our network, no patronage, nor will they be afforded any opportunities to solicit business from the membership of Wall Street Insight or any other organization that is sympathetic to this Mutual Fund Constitution.

 

The membership of Wall Street Insight will further do all they can within legal boundaries to persuade financial professionals that fail to recognize and acknowledge the problems that exist in the mutual fund industry. 

Article 3.

The Membership of Wall Street Insight will use a simplified uniform numerical scoring system to determine if a mutual fund is in distress.

 

Mutual funds that are determined to be in distress according to the new scoring system will be eligible to receive aid and assistance in the Mutual Fund Performance Clinic.    

 

Article 4.

All members of the financial community will be expected to recognize the Wall Street Insight Numerical Scoring System. 

Those members of the financial community that fail to recognize the Wall Street Insight scoring system and fail to express their opinions in the open forum will be considered a negative influence and a contributor to the problems that have plagued the customer for years. 

Let it be further known those members of the financial community that fail to recognize the Wall Street Insight numerical scoring system will receive no good will, no patronage, or nor will they be afforded any opportunities to solicit business from the membership of Wall Street Insight or any other organization that is sympathetic to this Mutual Fund Constitution. 

The membership of Wall Street Insight will further do all they can within legal boundaries to persuade financial professionals that fail to recognize and acknowledge the Wall Street Insight Simplified Numerical Scoring System.

 

Article 5.

The following is a breakdown of the numerical scoring system that will be used to determine when a mutual fund is in distress. 

The Clinic Administrator first calculates the mutual fund’s Performance Measure. This is done by taking a straight average of a particular mutual fund’s 5 year, 3 year, 1 year, and 6 month peer group percentile ranking. 

A Performance measure of 1 is the best possible score. A performance measure of 99 is the worst possible score. 

Mutual Funds with Performance Measures from 1-40 are not considered to be in distress. 

Mutual Funds with Performance Measures ranging from 41- 55 will be eligible to be issued a Citation and will be placed on a Watch List.

 

Any mutual fund that has a Performance Measure over 55 is considered to be in distress and in great need of rehabilitative assistance. 

 

Article 6.

Any mutual fund that receives a Citation will need to improve their Performance Measure to 32.50 or less within a time frame that will be specified on the citation itself.

 

Anytime a particular mutual fund fails to improve their Performance Measure to 32.5 or less within the Citation's prescribed time period the management of that mutual fund will have the following choices.

 

A) They will be allowed to enter the Performance Clinic with the assurance the Clinic Administrator will make room to accommodate.

 

B) They will be allowed to implement their own plan to improve the Performance Measure of their fund with the understanding if their plan fails to improve the fund’s Performance Measure to 32.50 or less within six months after the Citation Period expires, the membership of Wall Street Insight will lobby intensely for the removal of that same fund's management team. 

 

The membership of Wall Street Insight may also lobby the broker dealer community for the reallocation of assets away from that same fund to other mutual funds with higher Performance Measures or other funds already participating in the Performance Clinic. 

 

Article 7.

If a mutual fund is issued a Citation and during that same citation’s prescribed time frame that same mutual fund merges or consolidates with another fund the following will apply. 

The Clinic Administrator will calculate the Performance Measure of the new combined mutual fund prior to the merger. 

The Administrator will also calculate the last known Performance Measure for the fund that has merged.  

The Administrator will then take a straight average of the two Performance Measures. 

If this average turns out to be between 32.50 and 55 the citation will then be rewritten to require the newly merged fund to reach a performance measure of 25 or less before the citation period expires. 

If this average is 32.50 or less on the other hand, no new citation will be written at that time. 

Any time a newly combined mutual fund that has been issued a citation fails to attain a Performance Measure of 25 or less before the Citation Period expires that same fund’s management will have the following choices;

 

A) They will be allowed to enter the Performance Clinic with the assurance the administrator will make room to accommodate.

 

B) They will be allowed to implement their own plan to improve the Performance Measure of their fund with the understanding if their plan fails to improve the fund’s Performance Measure to 25 or less within six months after the citation period expires, the membership of Wall Street Insight will lobby intensely for the removal of that same funds management. 

 

The membership of Wall Street Insight may also lobby the broker dealer community for the reallocation of assets away from that same fund to other mutual funds with higher Performance Measures or other funds already participating in the Performance Clinic.

 

Article 8.

If a mutual fund is issued a citation and that same fund’s management feels as if the citation’s corrective period is un-reasonable, the management of that same fund will be allowed to petition the Advocate General’s Office for an Corrective Period Extension.

 

A maximum of two Corrective Period Extensions may be issued during the lifetime of a financial professional.

 

The issuance of any and all Corrective Period Extensions will be at the sole desertion of the Review Board of the Advocate General’s Office.    

 

Article 9

When members of Wall Street Insight invite a mutual fund that is considered to be in distress to participate in the Mutual Fund Performance Clinic that same mutual fund’s management will have the following choices.

 

A) They will be allowed to enter the Performance Clinic with the assurance the administrator will make room to accommodate.

 

B) They will be allowed to implement their own plan to improve the Performance Measure of their fund with the understanding if their plan fails to improve the fund’s Performance Measure to 30.00 or less within six months after the date of the invitation, the membership of Wall Street Insight will lobby intensely for the removal of that same funds management.

 

The membership of Wall Street Insight may also lobby the broker dealer community for the reallocation of assets away from that same fund to other mutual funds with higher Performance Measures or other funds already participating in the Performance Clinic. 

 

Article 10.

Once a mutual fund receives an invitation to the Performance Clinic that same fund’s management will have 15 calendar days (including weekends and holidays) to inform the Clinic Administrator in writing as to how they intend to respond to the invitation.

 

If for whatever reason a fund’s management fails to properly respond to the first Wall Street Insight Performance Clinic Invitation within 15 calendar days, a second invitation will be sent out the fund in question.

 

The following actions will possibly be taken by the Wall Street Insight membership if for whatever reason a fund’s management fails to respond to the second invitation within 10 calendar days after receipt.

 

 I) A very aggressive social network and media campaign launched against the existence of that same fund. 

II) A very aggressive lobby for the replacement of the fund’s management. 

III) A very aggressive lobby against broker/dealers who actively market shares in those funds.  

IV) Lobbying members of the broker dealer community to transfer assets away from those non-responsive funds. 

V) Extreme peer pressure applied to institutions with assets being managed by those non-responsive funds 

VI) Boycotting the businesses that have accounts with those same non-responsive funds.  

VII) In addition to the actions outlined above the members of Wall Street Insight may initiate further actions to promote behavior modification in the mutual fund industry as long as those actions are within securities laws compliance, tort law adherence, ethically sound, and morally just.   

 

Article 11

Once a mutual fund elects to enter the Performance Clinic, that same fund’s management will have 20 calendar days (including weekends and holidays) from the date their election   to process all required documents with Clinic Administration and begin treatments with the Designated Curve Setter. 

If for whatever reason a fund’s management fails to meet the 20-calendar day deadline, the Clinic Administrator will add one week to that same fund’s treatment period for each day of tardiness. 

Article 12.

The management of mutual funds that are not considered to be in distress can request to enter the Performance Clinic if they feel the need to do so. 

Priority will be given to funds with Performance Measures that are closest to 99. In short the funds with the worst scores will be accepted into the Performance Clinic first. 

Request can be made via email at info@wallstreetininsight.net. 

The request should include the funds name, ticker symbol, and contact information of the proper representative to communicate with the Wall Street Insight Clinical Administrator. 

 

Article 13.

The membership of Wall Street Insight will be looking to identify a set of Preferred Product Providers to help service their membership’s investment needs.  

The financial professionals that are accepted as a Preferred Product Providers will be considered a positive influence, an ally to the customer, and a contributor towards improving industry conditions. 

The members of Wall Street Insight and their affiliates will use the Preferred Product Providers as a go to resource with respect to mutual funds. 

Let it be further known those members of the financial community that become Preferred Product Providers will receive much good will, loyal patronage, and endless opportunities to solicit business from the membership of Wall Street Insight and any other organizations that are sympathetic to this Mutual Fund Constitution. 

Article 14.

Wall Street Insight Preferred Product Providers will need to meet the following requirements: 

Preferred Product Providers will have to be properly licensed to sell mutual funds and be in good standing with the applicable regulatory bodies. 

Preferred Product Providers must only market and or sell mutual funds with a Performance Measures of 32.50 or less at the time they are sold to the customer. 

Preferred Product Providers will be allowed to sell mutual funds with Performance Measures above 32.50 so long as those mutual funds are participating in the Wall Street Performance Clinic. 

If for whatever reason the Preferred Product Provider cannot locate a mutual fund with a Performance Measure of 32.50 or less that suites the needs of a particular client, the Preferred Product Provider will inform the Wall Street Insight Clinic Administrator in writing (preferably by email). The notification need to only include the type of fund that was being sought after, the sector, the industry, and geographic area of focus if any. No customer specific information will be needed. The Preferred Product Provider must also indicate the actual fund that was ultimately selected for the customer as a substitute. 

Preferred Product Providers must regularly (preferably every six months) take inventory of the Performance Measures for the funds being held by their clients.  Wall Street Insight will address any funds in that Provider’s book of business with Performance measures over 40.  Wall Street Insight will be looking to enforce provisions contained in this document.  The Preferred Product Provider will support the enforcement actions of Wall Street Insight in any way possible that does not violate applicable securities laws. 

Preferred Product Providers must be proactive in the recognition of the provisions contained in this Mutual Fund Constitution. If at anytime the Performance Measure of a mutual fund sold by a Preferred Product Provider is over 40, the Provider will support Wall Street Insight in any way legally possible in the application of the provisions contained in this Constitution. This will be done in an effort to aid and assist the management of that fund modify their behavior and improve performance. 

Preferred Product Providers must aid, assist, and service clients that have accounts with distressed mutual funds move assets away from those distressed mutual funds. These assets will be transferred to mutual funds with management teams that are willing to comply with the provisions contained in this document.  This is to be done in situations where those distressed fund’s management refuse or fail to comply with the provisions of this Mutual Fund Constitution in a timely manner. These transfers will have to be done in such a way not violate the mutual fund switching rules and not to cause any undue expense to the customer. 

Preferred Product Providers must lobby the wholesaler representatives of distressed mutual funds to encourage their management to comply with the provisions of this constitution. 

Preferred Product Providers must apply peer pressure to the management of distressed funds to comply with the provisions contained in this Mutual Fund Constitution.

 

Article 15.

If at any time a Preferred Product Provider is found in violation of any aspect of this document they will be promptly removed from the Wall Street Insight list of Providers.

 

Let it be further known that any Preferred Product Provider that fails to adhere to all the provisions of this Mutual Fund Constitution will be considered the customer’s adversary. They will no longer receive any good will from our network, all patronage will stop, and all opportunities to solicit business from the membership of Wall Street Insight and any other organization that is sympathetic to this Mutual Fund Constitution will be promptly discontinued.

 

The membership of Wall Street Insight may also lobby the broker dealer community for the reallocation of assets away from those Preferred Product Providers that violate any of the provisions of this Mutual Fund Constitution.

 

Article 16

All grievances by financial professionals as to the how rules and by-laws of this Constitution are being implemented can be heard by the Professional Liaison Department.

 

Article 17

Let it be known to all members of the investment community that any of the provisions contained in this Mutual Fund Constitution can be changed, added, modified, or deleted from time to time in response new circumstances and the changing sentiment of our membership. 

  

                                     Simplified Mutual Fund Scoring System

The following is a breakdown of the numerical scoring system that will be used to determine when a mutual fund is in distress.

 

The Clinic Administrator first calculates the mutual fund’s Performance Measure. This is done by taking a straight average of a particular mutual fund’s 5 year, 3 year, 1 year, and 6 month peer group percentile ranking.

 

A Performance measure of 1 is the best possible score. A performance measure of 99 is the worst possible score.

 

Mutual Funds with Performance Measures from 1-40 are not considered to be in distress.

 

Mutual Funds with Performance Measures ranging from 41- 55 will be eligible to be issued a Citation and will be placed on a Watch List.

 

Any mutual fund that has a Performance Measure over 55 is considered to be in distress and in great need of rehabilitative assistance

 

 

 

Glossary of Terms for the Wall Street Insight Mutual Fund Constitution

 

Mutual Fund Constitution: This is the document that will serve as a guideline for how the members of Wall Street Insight and its affiliates will interact with members of the financial community. This document will further act as a corrective mechanism for mutual under performance.

 

Mutual Fund Performance Clinic: This is the arm of Wall Street Insight that gives aid and assistance to money managers that are in distress. This is a match making initiative whereby Wall Street Insight pairs top financial talent to coach, teach, and assist money managers that are experiencing difficulties in the market place. Fees, expenses, and market performance will be managed by selected top talent in such a way to increase the bottom line for the fund’s account holders and ultimately improve the standing of the fund itself.  Mutual Funds that participate in the Performance Clinic will pay no more than 15% of their advisory fees to receive treatments. The actual amount to be paid for treatments will be determined by the Professional Treatment Provider and will depend on the amount of aid a particular fund needs in order to move up in the ranks of their peer group. The payments made by the mutual funds for the treatments will be paid directly to the Professional Treatment Providers themselves.

The objective of the clinic is to rehabilitate a fund’s management team in such a way to quickly get them back on their own, paired up with third party vendors that bring the most value, and on an economically cost efficient maintenance plan to keep them at the top of their peer group.

 

Clinic Administration & Administrator: This is the arm of Wall Street Insight that oversees how many mutual funds can be in the Performance Clinic at any one time.  This department makes sure spaces in the clinic are properly filled and that treatment providers are in place to accommodate the clinic’s population. This is the department of Wall Street Insight that calculates Performance Measures for mutual funds being evaluated, issue Citations, and manage the workload of the Treatment Providers and the Designated Curve Setters.

 

Performance Measure: This is Wall Street Insight’s simplified numerical system for determining when a fund is in distress. This system heavily corresponds to other well-known and accepted services in the industry such as Morning Star and Lipper. The scores are expressed from 1 to 99. The best possible score is 1, and the worst possible score is 99.  The actual Mutual Fund Constitution itself outlines the guidelines for the various cutoff points from 1 to 99.

 

Citation: This is a document that is sent to a mutual fund’s management team when that mutual fund’s performance is not acceptable by most conventional standards but not to the point of needing rehabilitative services. The citation is simply a notification to a fund’s management team that the membership of Wall Street Insight would like see them improve their Performance Measure by a certain degree by a certain period of time.

 

Watch List: This is a list of mutual funds maintained by the Clinic Administrator. These mutual funds are ones that have open Citations. This means the Performance measure of these funds are being monitored to see if they improve to the degree required before the deadline specified in the Citation that they were issued. 

 

Professional Liaison Department: This is the department of Wall Street Insight that acts as advisors and advocates to financial professionals in such a way to promote cooperation and good relations with the membership of Wall Street Insight. This is also the department that hears the grievances of financial professionals when and if they feel the rules and by-laws of the Constitution are being enforced and or implemented unfairly in any way.

 

Corrective Period Extension: This is an extension of the amount of time allowed for a mutual fund to meet the deadline specified on a Citation that they were issued.  Corrective Period Extensions can be applied for through the Advocate General’s Office of Wall Street Insight.

 

Designated Curve Setter: This is the independent professional arm that acts as the primary Professional Treatment Provider for mutual funds participating in the Performance Clinic. The Designated Curve Setter also acts as a coach to additional curve setters and treatment providers to insure they are confidant, prepared, and capable to meet the needs of the mutual funds participating in the clinic. The Supra Vantage® has been selected for this roll. Detailed information about the Supra Vantage® can be found at www.supravantage.net

 

Preferred Product Provider: These are broker/dealers, investment advisor, and licensed solicitors that are selected as go resources with respect to mutual sales and advice. The management of Wall Street Insight will maintain this list for the benefit of its members and affiliates. Preferred Product Providers will have to adhere to the provisions of the Mutual Fund Constitution in order to keep their name on this provider list.

 

Professional Treatment Providers: These are investment advisors, broker/dealers, custodians, economist, and securities traders among others that are to be managed by the Designated Curve Setter in such a way to bring the most value and assistance possible to the mutual funds in the performance clinic.

 

Advocate General’s Office: This is the arm of Wall Street Insight that administers the regulations and by-laws of the Mutual Fund Constitution.  This office also issues Corrective Period Extensions, oversees competitive disputes between Preferred Product Providers, and acts as the general voice and leadership of Wall Street Insight.

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I have read the constitution. I cannot say there is any thing wrong or unreasonable with what is being done.  I do understand how it can benefit both the customer and money manager's bottom line. 

I myself came into the business back in 1990. So I have been around. As far back as I can remember everyone in the financial industry  was under pressure to perform, make sales quotas, or something.  I remember you would get a couple of chances to get it together and then the higher ups would make decisions about your future with the organization.

It appears Wall Street Insight is simply applying that same principal to the money management community.  Is this wrong?  

The way I see it, If money managers are really able to get help from the performance clinic that  is mentioned then it would turn out to be a great program.  

That is my take for now.

I may have more to say later, once this scenario starts to play out. 

It's about time.
A line in the sand has needed to be drawn for some time.
As a financial professional there's no reason in the world performance shouldn't be held accountable especially now, thanks to wallstreetinsight, we can all band together and compare notes. Everyone always seems to harp on the top 1,3,5,10% of the wealthy in this country, the truth of the matter is a vast majority of them don't hold mutual funds for the very reason we have launched this initiative in the first place, chronic under performance. We are doing this FOR YOU THE PEOPLE PROFESSIONAL AND OTHERWISE who are sick and tired of the nonsense, excuses, and overpayment for lack luster results. If you have a 401K, YOU MUST CARE ABOUT AND SUPPORT THIS, if you have an IRA, YOU MUST CARE ABOUT AND SUPPORT THIS, if you are a pro with a book of business YOU MUST CARE ABOUT AND SUPPORT THIS, do you get where i'm going with this everybody? do you not think those out there that can afford top tier money management aren't on top of their brokers on an almost daily basis? trust me they are, so why shouldn't the true 60+% of this country that is invested not have a platform to voice and demand better performance??? All revolutions are always held in the beginning as adversarial this is not, please public, professionals, take this as a call to arms, money managers in trouble understand WE ARE HERE TO HELP!!! no one is shouting fire in a crowded theater but standards need to change. And for you professionals out there, from one manager to another, even if your on top of the world it never hurts to stop, take a look around and see if you can do even better, for those out there struggling, ignoring us, the constitution and any pressure there may be applied you are basically admitting that you are willing to ignore a life saver when you fell into the ocean, why drown we have a nice dry dock here waiting for you? it's not a hard choice. and on top of it we are trying to help restore a long needed and deep seeded relationship between wall st. and main st., any personal opinions aside WE ALL NEED EACH OTHER!!!! wouldn't you rather have your customers call and thank you for a change instead of constantly having to be asked what the hell is going on?
Listen, the first salvo in the war has yet to be launched.
Those of you who know better will be on our side when the firing begins.
Ignore this constitution at your peril.
The public is furious and BELIEVE IT there are a metric ton of professionals out there who feel the same way................
Don't say we didn't warn you.

vantagecta
Ryan

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