Sentinel’s Fiduciary Governance System (FGS) reports makes it very difficult for an Investment Manager to reach Acceptable or Superior ratings. We believe “Watch” means exactly that: “to be alertly on the lookout". When an investment manager is on our “Watch” List (receiving less than 5 points), we dive deeper into performance attribution and qualitative analysis so that we can advise our clients on next steps. The FGS reports are not a predictive tool; it's simply an alert system that cautions our advisory team to be more vigilant and do more research.
A fund on watch deserves a higher level of scrutiny to determine the cause of the shortfalls and to assess the potential for recovery and a decision to change a fund should be made only after a full analysis of all factors.