Fees on the firm's open-end and exchange-traded funds are a weakness, contributing negatively to the rating and creating a larger performance hurdle on funds. On average, Palmer Square charges fees on its funds that are in the most expensive quintile of similarly distributed funds. 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. Longest-tenured managers’ average asset-weighted tenure within the firm is ten years, bringing a wealth of knowledge through a complete market cycle and ultimately contributing positively to the rating. Finally, it's encouraging to see the firm showcase strong risk-adjusted performance across its entire open-end and exchange-traded fund lineup, with an average five-year Morningstar Rating of 4.0 stars.
Category
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