What is The Fiduciary Risk Rating™ (FRR™)?

ERS’s FRR is a revolutionary stock rating technology that accurately measures and rates the statistical probability, magnitude, and approximate timing of stock price declines.

The Fiduciary Risk Rating™ helps advisors reduce, avoid and prevent losses.

By Raymond M. Mullaney, CEO
May 2, 2024

Report Overview

Sample Size: The largest 2,500 US companies by market capitalization

The next 6 pages compare the performance of all 2,500 companies grouped by their respective Fiduciary Risk Ratings.

Stocks with an FRR rating of 0 to 25 had the highest average return of the 3 groups.
Stocks with an FRR rating of 75 to 100 had the lowest average return of the 3 groups.

Study Periods:

  1. 12/31/20 – 12/31/21 (1 year)
  2. 12/31/20 – 12/31/22 (2 years)
  3. 12/31/20 – 12/31/23 (3 years)
  4. 12/31/21 – 12/31/22 (1 year)
  5. 12/31/21 – 12/31/23 (2 years)
  6. 12/31/22 – 12/31/23 (1 year)

Appendix Overview

Sample Size: The largest 2,500 US companies by market capitalization

This appendix rigorously evaluates the protective efficacy of the Fiduciary Risk Rating.

Conclusions:

1.The Fiduciary Risk Rating helps investment advisors to reduce, avoid and prevent losses.

2.In 5 out of 6 periods, stocks with an FRR rating of 0 to 25 had both the lowest percentage (probability) of losses and the lowest average loss of the 3 groups.

3.Stocks with an FRR rating of 75 to 100 had both the highest percentage (probability) of losses
and the highest average loss of the 3 groups.

Study Periods:

  1. 12/31/20 – 12/31/21 (1 year)
  2. 12/31/20 – 12/31/22 (2 years)
  3. 12/31/20 – 12/31/23 (3 years)
  4. 12/31/21 – 12/31/22 (1 year)
  5. 12/31/21 – 12/31/23 (2 years)
  6. 12/31/22 – 12/31/23 (1 year)

The studies on this website are provided for illustrative purposes only. Click here for a full disclosure statement.