Longest-tenured managers have five years of average asset-weighted tenure, which is slim compared with peer firms. In isolation, this does n't bode well as the current managers have limited experience running strategies. Open-end and exchange-traded fund fees are a weakness at the firm, contributing negatively to the rating. On average, the firm charges fees on its funds that are in the second most-expensive quintile of category peers. With the current market environment of fee compression, this is cause for concern, as investors may flock to alternate asset managers over time to get a better deal. Principal Street has had high portfolio management turnover over the past five years compared with peers, detracting from its rating, as long-term stability tends to go together with positive results.
6 Critical Lessons for Bond Investors
Everyone can learn something from Principal Street High Income Municipal’s tardiness.