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, Princeton 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. Manager turnover at Princeton over the past five years has been higher than at peer asset management firms, potentially a signal that company culture is a bit unstable. Looking at the firm's risk-adjusted performance, its fund lineup compares similarly to competitors. Across its open-end and exchange-traded funds, the firm's average five-year Morningstar Rating is 3.0 stars.
Was Bogle’s Princeton Thesis Eerily Prescient?
Eric Balchunas, senior ETF analyst for Bloomberg Intelligence, describes the Bogle Effect and the serendipitous shaping of the Vanguard founder’s career.