MainGate Funds

However, an area of strength for the firm is that they've delivered strong risk-adjusted returns for shareholders, with an average three-year Morningstar Rating of 4.7 stars across its open-end and exchange-traded products. The metric measures the risk-adjusted performance of an asset manager's currently live funds. MainGate Funds has had higher portfolio management turnover than peer firms in the past five years. Turnover in the portfolio-management ranks can happen for a number of reasons, including fund mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for fundholders, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture. Lofty fees for the firm's open-end and exchange-traded funds are a weakness, contributing negatively to MainGate Funds's rating and creating a larger performance hurdle. The firm's fund fees, on average, fall within the second most-expensive quintile of similarly distributed strategies.