The Performance pillar evaluates whether returns have been the result of chance or a proven, long-term process and compares the fund to it’s category or benchmark.
The People pillar is an assessment of management’s talent, tenure, and resources
The Parent pillar looks at whether the parent firm emphasizes stewardship or salesmanship.
The Price pillar compares the funds fees to similar funds, determining whether or not the fund provides a good value proposition.
These five pillars help identify funds that are more likely to outperform their peers over the long-run.