The firm has proven successful at retaining portfolio management talent, providing continuity for strategies, as displayed by low turnover in the past five years compared with asset management peers. The firm has not had a durable product lineup. Specifically, its three-year risk-adjusted success ratio demonstrates that only 33% of products both survived and beat their respective category median on a risk-adjusted basis. A low success ratio indicates poor performance and raises questions about a firm’s discipline around investment strategy and product development. Fees on open-end and exchange-traded funds are a weakness of the firm, contributing negatively to the rating. On average, expenses on its funds are within the second most-expensive quintile compared with category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock over time to alternate asset managers to get a better deal.
Category
A category is a way to group investments based on similar risk, return, and behavior profiles.