Managers at Scharf Investments are at the top of the industry when it comes to eating their own cooking. Almost 75% of the firm’s assets are represented by a manager who invests at least$ 1 million in their respective product, in an effort to align portfolio manager and shareholder interests. Scharf Investments has brought continuity to its product shelf, with low portfolio management turnover compared with peer firms over the past five years. 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.